The US dollar is getting a lot of attention lately, and not just from alternative media sources, but the mainstream financial media as well.
In my opinion the meteoric rise with regard to the value of bitcoin and other cryptocurrency's is reflective of declining investor sentiment with regard to the US dollar. On the other side of this are those who believe that a dollar turnaround is eminent. Well is it?
I would like you to have a look at the chart below.
This is a six month daily chart reflecting the price action of the US dollar.
It is simple to see the during this six month time-frame the US dollar has been in more or less a steady decline.
I would like you to take notice to the purple line, this is the 50 day moving average. I would also like you to take notice of the blue line, this is the 200 day moving average. Now, I circled for you on the right side of this chart where these two moving averages continue to move closer together.
The fact that these two moving averages are moving closer together, and if this trend continues will converge, is very important.
The crossover of the 50 day moving average below the 200 day moving average is very significant.
If this trend continues, the 50 day moving average will move below is the 200 day moving average, and this is known as a death cross.
A death cross is seen as a bearish technical signal, which means that further losses are not guaranteed, but are likely.
If the trend with regard to the dollar continues, and this death cross does manifest itself what does it mean?
A continued decline in the dollar value will cause prices to inflate as the purchasing power of the dollar is lost, (inflation which could potentially reach catastrophic levels at one point).
In my opinion it also means that we will see The value of cryptocurrency continue to increase in value. Also, in a real market (for which there is none with regard to gold and silver) we would see their value rise as well.
So what's the take away here?
If the current downward trend with regard to the US dollar continues, and the death cross is realized, we should expect to see inflation, a rise in the value of cryptocurrency, and if we had a real market, an exponential rise in the value of physical gold and physical silver.
The real take away..
If the death cross is realized who knows how much further the dollar will fall.
Gregory Mannarino
Agreed. FIAT money crash is just a matter of time.
Statisticly life of currency last about 25 - 40 years.
statisticly every 120 years a solar flare hits earth and melts every wire with an electrical current running through it. Just saying, we are 50 years over due. diversify!!
I made a post on my blog with more charts to this.
https://steemit.com/dollar/@sjovmaiin/the-coming-fall-of-the-us-dollar
The 18 year cycle between the euro and the dollar is interesting!
Congratulations @marketreport!
Your post was mentioned in my hit parade in the following category:
Our dollars will be worth less than toilet paper. Gold silver, bitcoin, food, water, supplies stockpile now. They want to sink the dollar to bring in a global digital currency. This may be their opportunity. Thanks Greg. I welcome feedback.
Check out this post for more on the cycles of weakening US dollar and the current state of the dollar.
https://steemit.com/dollar/@sjovmaiin/the-coming-fall-of-the-us-dollar
Thanks for the reply and post. It dollar IS weakening and we need to be prepared. If only the Sheeeple we awake it would be a vastly different America.
There might be a period of deflationary recession/depression before hyperinflation.
Most people will not see the collapse coming until it smacks them in the face.
I agree with people having little cash to spend. The natural reaction with supply and demand would be deflation. Than with the federal reserve being filled with Keynesian economists their reaction would be to increase monetary supply to "fix" the deflation. Then the "fix" would get out of control before countering it.
Great information Greg! The clown show continues, for now.
Big time.
Greg, do you see gold and silver stocks decoupling from the stock market during the inevitable coming market collapse, or will all paper assets turn to dust?
Keep and eye on NAK. The EPA permits have finally gone through and partnerships being finalized. https://seekingalpha.com/article/4067455-northern-dynasty-minerals-offers-asymmetric-risk-vs-reward
Thanks again Greg for your insight.
Been closely following your work for quite some time, and
I just want to say thank you for all your fantastic work!
Bring it ON.
I agree. This whole thing is so twisted and distorted.
Ayup. Just sold my position in BGM:TSXV and replaced it with Silver Eagles...I'm out of the market and seriously into bullion. Let the games begin.
I have my UVXY waiting and ready.
what is UVXY?
never mind. found it is the ultra-short VIX.
Thanks Greg, been following your stuff for long time, days before the tie, and hairspray, lol. But you've been correctly nearly all the time, and so glad to see you finally come around on crypto currencies, or blockchain tech.
I hope you look more into etheruem tech, ethereum.org it's just tip of the iceberg for a massive bull market run. Must have, or etheruem based tokens (solid companies that is) that will add to ecosystem.
We are on verge of Web 3.0 and hopefully you take a little bigger look at this, Billionaire Mike Novogratz just said he put 10% of portfolio into blockchain tech in this video.
Billionaire Mike Novogratz has 10% of his portfolio in blockchain tech, he said in this video from other day.
I'm hearing the name etheruem more and more these days which has to mean something.
Yes, Ethereum is by far better than bitcoin in useage and development. Could write a book of use cases and corporate involvement. Bitcoin was amazing, but it's muddled with politics and lot of drama in foundation and community, on top of not embracing innovation.
Personally I see Etheruem overtaking bitcoin eventually as use cases are 1000x more. FYI it's still early to the party, wall st hasn't really even gotten involved yet, nor has average joe.
"and if we had a real market, an exponential rise in the value of physical gold and physical silver."
Sad, but true! On the positive side, it allows the little guys (like me) more time to accumulate more silver and the longer it takes to break the manipulation, the stronger and more violent the move up!
@marketreport: Very informative information thank you Greg! Interesting visual on those moving average and where potentially it may be headed. Upvoted you~ :)
Great opportunity on trading this and for gold and silver.
Continue to stack both metal and crypto coins instead of trading.
Doing so. I do my best to profit from both sides!!
Greg look the shorts are buying silver like crazy. The bought (covert their shorts) always on the right time. Amazing if this should happen with the collapse of the Dollar. But how knows what will happen in this manipulated "Markets"
I agree. The "death cross" is a very bearish signal.
Simulaneous death cross in USD and golden cross in gold!
Indeed!
@marketreport hey brother just curious what your thoughts on Goldmoney are? - From what I understand any gold purchased with crypto cant be withdrawn and is restricted to a vault in Dubai. Not even sure what the point of using a service like theirs would be?...it sounds like buying physical with Bitcoin from JM Bullion is still better.
Thank-you for the information. It's good to know about what is happening in the financial area.
I have been watching the DXY and 10 year non-stop since I heard you mention their importance, hence why I'm baffled at why the DOW could jump in such an environment. Well, we know why unfortunately. But we'll make money anyway. I know you hate the paper derivatives, but please comment on NUG and JNUG. They are fake, I know, but for a trader, there is huge amounts of cash to be made, you just can't get piggy....
I note the USP/JPY Forex has been manipulated to a higher than 'market' level as to keep metals prices contained. For those who don't follow precious metals, the USD/JPY runs inverse to gold pricing. BoJ is the Fed's best friend.
Yes, this currency pair is the right now the true co-relator to gold's price, not the DXY. It is very strange that USD/JPY is running independent to the DXY. GREG, if u r seeing this, do u know what's happening? In recent days gold hardly responds to DXY changes and USD/JPY isn't falling in step with DXY.
Yeap I be trying to tell people but no one want listen
"If you're not prepared for tough times, you can't get prepared when times get tough." Jamie Dimon, chairman & ceo of JPMorgan Chase
The cryptos have now become the canary in the coal mine, it's so good to have such reliable, unmanipulated markers for a change.
Thank you once again Mr Mannarino for your insight. I will continue to stack as much as possible.
Hi Greg does this not mean a potential for a big war is a great possibility?
Does anyone have a figure for the acceleration rate of the dollar decline?
Greg, Your newest stock picks on Traderschoice.net do not specify if you are buying a Put or Call.
Stradle 😊
I understand the 80/20 (& the 90/10) straddle whereas 80% is placed on one side (a Call) and the other 20% is placed on the Put or vise-versa. So a current stock pick is XLF July 21. Is it 80% Call or 80% Put?
Please see the article posted just under the picks.
I am missing something or simply do not understand. You show the Ticker, Expiration Month & Price but there is nothing for the Call/Put. I have reviewed the article within the link. I do not believe you are opening all of these as a 50/50 straddle.
If this happens then metals will make a final break with the paper market, won't they?
If it keeps falling, you will see a inflation in the US, no matter what crafty scheme they may apply to keep the PM prices down.
This, depending on the extent, will increase the social unrest among the people, particulary the "small" people, who are struggling to get along already now. Difficult times ahead...
Gregory, I read today that with all of the rogue computer virus and worms that have been unleashed recently that all cryptocurrency is at risk of being wiped away at anytime without hope of being redeemed. Do you think that this is a valid threat from those who may want to keep control of the currency and their source of power?
This won't happen. Cryptocurrencies is safe and secure.
Is this the beginning?? Maybe, but these markets have been manipulated for so long, who knows what the Central Bankers will do to keep it going?
Time will tell.
Hopefully a bond crisis will happen late summer or early next year.
What i wonder is how many countries this is gonna affect this time.
Last time things went bad in the us it went world wide.
And i wonder how many countries are gonna survive this next one.
Thank you Greg for the analysis of the direction of USD. I know the collapse of the dollar is imminent, but I am still hoping for a dead cat bounCe one more time for a possible good entry point for cryptocurrency. :)
If people become aware of this other piece of evidence about the government and banks colluding on suppressing the price of gold, do you think people will understand and get angry?
https://steemit.com/money/@colinb/wikileaks-drops-1974-state-department-cable-on-gold-collusion
I almost agree with you, Greg. Sadly all of this index compares usd with other western currencies.... The U.S. can easily control them through financial/ economical or war pressure. We might need to wait for a true challenger to see how much the dollar really worth.
Thank you Greg for all your hard work and research
I totally believe that inflation is already here. In my country(Philippines)prices of basic commodities are on the rise.
Going to be a nerve racking few days!
Once again, thank you for the knowledge!
I'm seeing the same thing. Crytos with a theme like STEEM or game credits will also eliminate the need for the US Dollar in huge industries for the foreseeable future.
Great report!
I say everybody buy crypto currencies! Let's break the banks!
Enough with corrupt govt!
The economic world is about to change very shortly and most people are going to get their clocks cleaned financially. I spend so much time Greg trying to educate and possibly save friends and family from some of the destruction that is coming. What I get in return is being called a nut or Mr. negative. People just don't want to hear this message. I guess I just walk away for my own sanity? You've been at this longer than me and your still going. How do you handle all the insults?
He probably handles the insults very well by showing people how rich he is.
Rip the face off it, Greg!
Thanx... re-steemed!
Thank you Gregory i guess the end is near i better prepper my bags and leave the country I'm glad i bout some farm land in Central America and i still will see your reports from far away still got 140 pounds of silver so i still will to hear averything about the economy
I love candlestick charting analysis and agree the chart is very bearish. Its hard to see but that also might represent an evening star if using Japanese candlestick by Steve Nison.
Throw me a bone there Greg I post a blog article about the dollar index you upvoted it I saw that you did. Than 30 min later you post on it as well, saying the alternative media sources which is me,LOL. tell your followers to follow me
Greg-thanks again for the valuable info.
When the Sheeple realize what is and what has happened (over the last 8 years especially) and the panic sets in, watching the Bankers and the Fed try to control the chaos is going to be like watching someone trying to herd cats.
"Be your own Central Banker", as a wise friend of mine says...
A death cross is coming. As we know, moving average is a lagging indicator. This means moving averages are finally confirming the Dollar's decline.