Red-Hot Resources

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Thursday, November 30, 2006

How Low Can the Greenback Limbo?

Are you watching the crumbling US dollar with the same kind of fear and anticipation that I am? I mean, sure, Red-Hot Canadian Small-Caps and Red-Hot Asian Tigers are loaded to gills on precious metals stocks that are doing very well today as gold soars higher by over $10 an ounce to a 16-week high. But because I live in America, and because I have US dollars in my wallet, I am watching the falling US dollar with some dread.

So how low can it go? Pretty low! Take a look at the chart...

Those two blue lines indicate important support. As you can see, the US dollar has a long way to go before it gets there.

The US dollar is way oversold ... it still goes down. Any optimism has been squeezed out of the market ... it still goes down. Holy Sponge Bob Squarepants, how much lower is it going? I guess it has to bounce sometime ... doesn't it?

I'm so glad we're already well positioned for this. It would have been nice to catch a bounce in the dollar and use that to add more gold and silver positions, but eh ... you can't have everything.

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