Dollar Testing Breakout of 9/29/08

One thing that will be a bit surprising to some, but compared to a year ago, an investment in the dollar would have earned you more than an investment in the S&P 500.  It is important that denominated in the S&P 500 ( ETF UUP / ETF SPY ) the dollar broke out to the upside on 9/28/08 and is now testing that breakout.  It is an important test that reflects the fact that the dollar had a big rally in early 2009 and the stock market had a big decline, now we are seeing reaction moves in both from that 3/9/09 apex.  This is an important test. 

Gold is a small market fanned by investors/investments that fear inflation and who ignore the effect of the bubble deflation.  Our point has been and remains, the pump is way to small relative to the deflated balloon for anything measurable to occur in the reflation attempt. 

8:15 AM CDT

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