Dollar Debasement Fail ~ The Risk Averse Alert

Friday, April 27, 2012

Dollar Debasement Fail

A currency-related curiosity for your consideration...


Don't ask me why, but whenever the relative performance of the U.S. Dollar Index versus the S&P 500 crossed above its 20-week exponential moving average these past few years (see red dots in the bottom panel), the market soon afterward came under pressure. What could this be in the face of attempts to sustain an unstable mountain of credit securities and assorted derivatives via hyperinflationary bailout? Dollar debasement fail? Something to keep an eye on.

Fast Money
* * * * *

© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!