Petricca’s Pick 11/08/2023

PETRICCA’S PICK.   11/08/2023

 

SELL SHORT U.S. DOLAR INDEX

 

The U.S. Dollar index futures contract is in fact within my UPPER 25% parameter where the Long-Term fundamentals are bearish.

 

 

In the Short-Term –

 

Last week the U.S. Dollar fell sharply as the trade now believes the Fed is done hiking interest rates.

 

The policy-setting Fed, as expected, left rates in the 5.25%-5.50% range where they have been since July.

 

After the announcement –

 

The same old story concluded with mixed messages that left investors doubtful that the Fed will raise interest rates again.

 

My take?

 

Two consecutive meetings in a row of no policy action from the Fed could be a trend.

We shall see!

 

In the Longer Term –

 

It is my opinion, a devaluation of the U.S. Dollar, a possible U.S. dollar collapse is inevitable.

 

A currency collapse is when there is no longer any trust that the asset, country or organization has sufficient value to reflect the currency.

 

This can happen if and when there is –

 

POLITICAL INSTABILITY –

When there is a military coup, public upheaval, a war or another event resulting in political unrest, the Dollar can often be a casualty.

 

HIGH DEBT –

Many countries have high debt these days, but historically high debt can cause a flight of assets and a collapse of the currency.

 

INFLATION –

Inflation is expected to stay at a high level through 2024. While the supply shocks that contributed to rapid food and energy inflation have improved for the moment, Americans are still dealing with expensive service costs, as well as major increases in rent, housing, healthcare, airfares and other transportation.

High inflation is the poison that will eventually cause the demise of the U.S. Dollar.

 

Today, the December U.S. Dollar Index is trading $105.64.

 

Those of you that have an interest in protecting assets using this commodity instrument should call for entry levels.

 

Remember –

 

History is full of sudden currency collapses. Argentina, Hungary, Chile, Angola, Zimbabwe and Germany have all experienced terrible currency crises since 1900.

 

My Long-Term Strategies will insure you are “in the market” if and when this important Episodic Volatility occurs.

 

Please call me personally if you have any questions…312-690-7753

 

In the meantime –

 

Have a great year trading…

 

Best

Frank

Questions? Ask Frank Petricca today at 312-690-7763.