Focus on the Dollar
Four factors/groups have kept the dollar under pressure on this last leg down: 1) The Fed’s easy money QE2 program; European austerity moves; the Gold Bulls; and lastly the yen fling to which the Bank of Japan put a quick halt. We have been hoping for an exuberant cleanout of the dollar, but so far that has not happened, just kind of a whimpering bottom move. As such it is tempting to buy at the market but we are trying to hold off for some cleanout play. The gold bugs would be the likely candidates to initiate that move.