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Read/Watch Time: 33 min (incl nuggets)
Thanks for tuning in.
I’m watching Dollars and Interest Rates.
Remember the sledgehammer called the U.S. Dollar? I’m watching the chart of the $DXY. Two days doesn’t make a trend, but it is possible to get a nice bounce from here.
The demand for long-term bonds helps determine long-term interest rates. Are we getting ready to see lower prices in bonds and higher long-term rates? What will that feel like in the old 60/40 balanced portfolio?
We have had a nice rally in stocks, and it looks to me like things are overbought. Is the $VIX going to bounce hard? Is the $DXY a warning sign?
My long-term signal is still bearish. My short-term signal says “overbought”. The economic headwinds are stiff. Good luck out there.
Feel free to teach this to your family and friends. We appreciate all referrals.
Here is the video link: https://squiggletrader.com/wp-content/uploads/2023/02/Markets-Update-Dollars-02052023.mp4
Cheers!
Bo – Chief Squiggler
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