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At the same time as the carry trades break down, another trade is emerging that is going to catch people off guard. Indeed, many will not notice that the "majors" are breaking down as well, in the favor of the dollar. That's right! The greenback!
Let's look at a 10-year chart of the U.S. dollar index below to illustrate this point.
The Unnoticed Trend: The Buck Finally Breaks Its Six-Year Trend
This will be a hard pill for many currency traders to swallow. But even the buck has "up" years. While they are few and far between, 2009 will be one of those years. As a matter of fact, it is starting even now. Yet most won't realize it until it's too late and it has eaten up most or all of their account!
Any way you look at the above chart, a monumental thing just happened. The U.S. dollar index closed the month above its downtrend line for the first time in SIX years.
That's huge.
It's easy to believe everything will continue to rise against the buck forever. But if you're buying currency pairs in the Forex market, that belief could clean out your account. This stronger dollar tend will be in force for so many months, so it could wipe you out before you know what hit you if you're not careful.
That means the only ones that will survive are those that realize "quickly" that the dollar is one of the best places to be during that time. I know it sounds crazy but its going to be the "place to be" and the place to profit in the coming year (and even now)!
SEAN HYMAN, Currency Analyst
EDITOR'S NOTE: This dollar trend is already in effect, and it seems like no one saw it coming. No one - that is - other than Jack Crooks. Despite prevailing opinion over the last several months, Jack has consistently argued and expected this trend to emerge. And Sovereign Society members are raking in massive profits around the globe as Jack's expectations become reality. Click here for more information.
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