USD Index

I know my posts as of recently have lacked sustenance, nor have they offered any obscure or unique outlooks on the economy.

After my Wild were eliminated from the playoffs last night it was time for me to do some soul searching. While I recollected the season and thought to myself how young players like Nick Schultz, Pierre-Marc Bouchard, and Brent Burns matured and gave us Wild fans a glimpse into a special future. I thought to myself, 'it's not so bad.' So what does this have to do with anything?

Well, I sort of had an epiphany. After the game ended, I flipped open my laptop to check the USD Index. This has been an all to common occurrence for me as I have been waiting for something 'special' to happen.

Well, nothing has happened yet, but I wait...and I watch...and then I thought...WHO CARES!! Let's face, we have been given a glimpse into the future, just like the Wild gave me. We have seen unnaturally high oil and natural gas prices for this time of the season. Refineries are struggling to keep up with demand, and we aren't even into the driving season yet. And that's just this summer. What about next year, and the year after that? You get the picture

Although it's the time of the year where gold should be getting ready to shoot for the moon...but it looks over bought. The timing doesn't seem quite right. The USD Index is starting to look over sold and defies going any lower. The double bottom, double top scenario that I spoke of in a recent post is looking more and more likely.

Again, as I so eloquently put it earlier, who really cares. I expect oil to push $75-78 /barrel and look for $4 at the pump this summer. If gold corrects back to $660 /oz, it will rearing to go as oil puts downward pressure on the dollar.

The demise of the dollar is imminent. There are too many of them floating around, and the Fed is always adding more. I say this to myself more than anything, patience is a virtue. The fireworks will come.