Monday, April 23, 2012

Devil's Advocate

I can't help myself, I have to put the other side of the coin up for you to ponder at as well.  The Aussie dollar and the S&P have moved almost perfectly together for the last few years.  When looking to that currency to get an indication of the next move in stocks, I see a VERY different picture than what I do looking at the S&P index alone.  The Aussie looks like it could be bottoming from a slide it's had at or near these levels, and could be forming a sort of cup and handle.  A break above it's highs I think could send it to a 20% premium over the greenback.  If THAT were to occur, you could be certain this is only a pause in what will be yet another leg higher for stocks.


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