de ja vu, page-143

Farsight this is pretty much how I see it, the dow/usd ratio is in the process of forming a head and shoulders top, cash is king and I believe that we are within weeks of an intermediate bottom in the $usd. When I look at the current shoulder we are forming, I think 2 things.

1. We are in a usd bear market so isn't it natural that the uptrend of the shoulder(counter trend)is being supported mostly by usd weakness.

2. We are now in a equity bear market so the again the shoulder uptrend (counter trend) is not getting much support from equities it is mostly $usd weakness.

The following leads me to think that within the next 4-6 weeks the opportunity to short large cap aussie commodity companies will emerge, anyone shorting the likes of NCM, LGL, BHP and RIO will make a motza as the ASX turns into a complete rout. The same head and shoulder pattern exists in the aords/$usd for what it is worth.