Stealth Dollar Low

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The dollar has been displaying tremendous relative strength as it has rallied for the past 45 days. This is contrary to our cyclical expectation for an impending 3 year dollar decline. A possible explanation could be that the dollar has already printed a stealth 3 year cycle low.

4 $$$ 3 ye

The dollar formed a failed yearly cycle in May. Our expectation was to see the dollar tag the declining monthly trend line and then continue into its 3 year cycle decline.

Instead the dollar is breaking above the declining monthly trend line. This aligns with what we see with the monthly cycle bands. Cycle band theory tells us that a close above the upper cycle band indicates that a cycle low of a higher order has been left behind. In other words, a close above the upper monthly cycle band would signal that May printed an early 3 year cycle low.

3 $$$ stealth 3 yr low

I would like to remind you that no one thought that the dollar printed a 3 year low back in May 2014. I did not have the cycle band tool back in 2014, but as we can now see the close above the upper monthly cycle band confirmed the new 3 year cycle.

There is a concern that a May, 2016 three year low would have only been 24 months.

36 Months – 1978 – 1981
28 Months – 1981 – 1984
45 Months – 1984 – 1987
38 Months – 1987 – 1991
19 Months – 1991 – 1992

30 Months – 1992 – 1995
41 Months – 1995 – 1998
45 Months – 1998 – 2002
29 Months – 2002 – 2004
39 Months – 2004 – 2008

38 Months – 2008 – 2011
36 months – 2011 – 2014
24 Months – 2014 – 2016 ???

Twelve 3 year cycles stretching from 1978 – 2014
424 months/12 = 35.33 months

The average 3 year cycle low prints every 35.33 months. However there has been one yearly cycle that ran 29 months and another lasting only 19 months. So it is certainly possible that May hosted the 3 year cycle low. A close above the upper monthly cycle band will confirm the new 3 year cycle.

This is just the beginning of the discussion. In the Special Dollar Report: Stealth Low, we will look that the ramifications if May actually hosted the dollar’s 3 year low. I will break down what this means for the dollar’s 15 year super cycle. And then tie this in with what happened to gold the last time this occurred.

This week I am offering a special 6 week trial membership along with the Special Dollar Report for $15. You will receive 6 weeks of Likesmoney Subscribers access along with the Special Report: Stealth Low.

The 6 week trial subscription includes:
* The Weekend Report
* The Mid-Week Update
and I also post what I call my Weekend Updates.
The Weekend Updates cover:
* The FAS Buy/Sell Indicator
* NATGAS
* Copper
* XLE
* The Bullish Percentage BINGO

So please click here if you are interested in the 6 week trial subscription and Special Report: Stealth Low.

Subscribers can click here.

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4 thoughts on “Stealth Dollar Low

  1. If the dollar printed a 3 year cycle low in May and it is to continue upward, wouldn’t gold (metals) counter that trend with continuing downward pressure? This seems to be gainst what you suggested in the weekend update. Thanks.

    • Logic would agree with you. But in the special report we look at the last time this occurred in the dollar’s 15 year super cycle and what happened to gold. I’ll give you a hint, gold to not go down ;0)

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