By John Galt
May 23, 2011
The following chart from FinViz.com says it all:
If the markets close above 76 or 77 today, odds are we could see the US dollar index rally past the 80 level within the next two weeks. That being established, this is a huge move which will create massive pressure on profits for U.S. multinationals and squeeze their margins even further. This move could also parallel the recent parabolic moves witnessed in some commodities which resulted in sharp 3-5% moves to the upside and obscene moves to the downside. If that does follow and the markets engage in 3% plus moves in the currencies each day, the economic instability created by these moves would pale compared to the geopolitical instability which would occur.