The USDX has recently been going vertical in response to the euro (and CHF). If it continues today, it'll be bad for stocks, bad for europe, and possibly good for Ben Bernanke, who will have get the green light for his newest weapon against the economy: QE machine gun style.
For the moment, gold seems to be yawning since people still think the dollar is 'safety'. Of course, the bigger the bubble and the more QE, the more brutal the correction will be in a few weeks-ish.
I talk to people all the time about gold, silver and the dollar. The fact is 99% of people I talk to don't have PM's and think the dollar is still the only play. This continues to remind me why I need to keep acquiring it, nobody owns it. It will only become clear when gas is $10/gallon here in the us and a loaf of bread is $5 (and frankly we are not too far from this). I bought my last gold coin a couple weeks ago and paid $1807 for it, some older gent next to me in the coin store said he couldn't believe I would by gold at that price. I told him, you will wish you would have bought one for yourself by Christmas. There are too many people that are brainwashed in this county and refuse to acknowledge the reality of what is happening around them.
The dollar will burn, Ben will print and the sheep will be fleeced thru inflation until there is nothing left. Only then will it be reset, prepare to have something tangible in your holding to start over with.
Oh my holy gold. If anyone is paying attention to the price of gold right now, I'd say "BTFD" doesn't even quite half cover it. $1800 gold folks, and silver breaking under $40 yet again. And still falling towards the close of the NYSE. Just a tad warning though, could continue to be a bumpy ride as the USD continues to point skyward, but when the correction happens.. well let's just say they'll be in desperate need of the CME's services again.
You could look at the POSX vs basket over the past year and think "damn, this is ugly" with your uber bear sentiment, or you could look at and think "this is due for a bounce." If I had an ASE for every time I heard "the dollar is dead!" over the past year I'd need to dig a hole in my back yard the size of a swimming pool. Like Jim Rogers says, "when everyone's gone too bearish, I take the opposite side of the trade." Notice he owns a lot of dollars ATM.
I personally think the USD and the SPX play ping pong for another two weeks or so until another round of fireworks. We're in the 7th inning stretch and things are getting boring. ;)
POSX back to normal. For the moment. Called BTFD. I still say I called it first and I still think I called it right ;P. I'm sure others noticed it just seeing the numbers, though. Most epic sale since the last cartel bowel movement. Expect more manipulation to follow, however.
Seems to me the Euro is in more danger right now. When it falls, the POSX should rally. I've always thought of the two on opposite sides of the teeter totter from each other. And when liquidity flows into the dollar, equities would hit the skids....again. I'm hoping it makes a run past 80, personally.