A ten year cycle and super bearish sentiment on dollar projects US Dollar index to 120 from 82 in the next four years
June Russo
Dec. 3, 2006

The dollar bears outnumber any bulls by 1000 to 1. The unprecedented number is bullish in general. In this weekend, not a single publication talked about any strength of US Dollar. All gloom and doom on dollar shows dollar is probably at a bottom. The December 2004 bottom may be the start of a massive five to six year bull market. The correction took the dollar index back to 82 levels. 2007 will most likely be the biggest bull market for the dollar ever. It can zoom as high as 100 in 2007, which means 0.95 euro per one dollar. Before the bull market in dollar is over, euro can be at 0.80 euro to one dollar.

A ten year cycle study predicts 2004-2006 as a major cycle low while 2009-2011 as the major cycle top. It means 2007-2009 can be explosive in US Dollar. If you are a contrarian, you will be happy to know, not many Dollar bulls are in the currency market.

A ten year cycle and super bearish sentiment on dollar projects US Dollar index to 120 from 82 in the next four years
June Russo
A ten year cycle study predicts 2004-2006 as a major cycle low while 2009-2011 as the major cycle top. It means 2007-2009 can be explosive in US Dollar.
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Confidence indicator of the University of Michigan went up slightly from 92.1 to 93 – stocks and dollar can rally, bonds fall
Alan Hershey
The data in this week will most likely show that the confidence indicator of the University of Michigan went up slightly from 92.1 to 93. The fact that it is not sliding will provide the Fed hawks a pretext to stay the course.
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Initial Jobless Claims reduced by 32,000 last week and 13,000 more new Nonfarm Jobs were created – bullish for dollar?
Bernie Snyder
The dollar bears had their day. This week they will cover their short positions, as data will show the job market did not deteriorate any further.
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ISM Non-Manufacturing data of 55 from 57.1 will point out the economy is not that weak
Joe Weinman
The market will do everything imaginable to get a two or three rate hikes. The ISM manufacturing data showed there was a contraction last month after three years. But the ISM service data will show relative strength.
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A sharp drop in factory orders from lack of demand in real estate sector will not be enough to scare the Fed
Peter Oberois
. The factory orders are expected to plummet with a fall of 4.2% compared to a 2.1% rise last month. But that will not be enough to calm down the inflation hawks in the Fed.
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Higher productivity and lower labor init cost will boost the equity market and pull gold down
Sam Adelton
The third quarter productivity will be 0.4% from the prior data of 0.0%. The unit labor cost is expected to be rise 3.3% down from 3.8% in the prior data.The stock market has its structural problems but this data for the time being will be bullish.
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The Wall Street is now controlled by a handful major hedge funds – the lack of organic liquidity is a major concern
Marla Guthrie
If Dow goes back to 1700 in the next four years, the misery and suffering among the common people will be enormous. The Enron scam will look like a baby.
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