Look For Familiar Patterns In Stocks and Commodities

The road map for how the dollar is trading was actually created back in 2008.  If you look at the chart I have put below, you can see how similar the patterns are at this point.  I have divided the chart into sections that correspond with the dollar cycles.

Stocks do not necessarily trade opposite of the dollar, bu tthey tend to trend with it.  The chart below shows 2008 S&P in an unmistakable pattern that follows with the 2008 dollar.  Barring any significant news such as Bernanke changing fed policy, I would not bet against something similar playing out.


And commodities should work the same way.  Sorry Dennis, but this corn chart is why fertilizer will come down, and so will MOS.

Mosaic got smoked back in 2008.


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