The US Dollar Super Big Downwave Chart 1:
28 January 2018, Sunday, 12.37pm Singapore Time
(Click on Technical Chart above to Enlarge)
This US Dollar Analysis is a prelude to the Crude Oil Market, Crude Oil related Stocks and Emerging Market Analysis to come. The analysis will be as detailed as possible to link much of the inter-asset class groups together.
Before I proceed with this analysis, I would like to take this opportunity to thank the Malaysian stock and equity market community for their enormous support and kind gestures shown to me all this while. The Malaysians are some of the kindest and most humble people I have seen, ever eager to learn, absorb and improve. In particular, I am greatly inspired by the their unity and Kampung spirit, always looking out for one another in one tightly knitted community. They are the most humble and kind community I have countered. This explains my efforts in doing the more in-depth than usual analysis, to allow everyone to see the big picture and why Emerging Markets like Malaysia and the rest of Asia will hyper rally through the Trump-inspired US policies.
The Green Circled Regions are The Donovan Norfolk live forewarnings in 2012, 2013, 2014 and 2015 cautioning that the humongous Quantitative Easing (Q.E) by FED with its unlimited money printing will not cause USD to plunge, but instead to super rally, causing commodities, crude oil, energy, commodity stocks and emerging markets and their associated equities and currencies to be weak, and to result in nasty losses for majority of traders and investors in Asia. It all got enacted per my warnings and many Asian market investors suffered deadly losses in those years, true to my words.
The Red Circled Regions are The Donovan Norfolk live forewarnings in 4Q-2015, February 2017 and June 2017 cautioning that USD will have a large wave down soon, against market expectations of the majority herd as well, because most will expect USD to do large wave up due to rise in interest rates and money tightening on the USD. The USD large wave down will once again catch majority by jaw-dropping surprise and will be the exact reverse of the Green Circled Zone. USD major downwave will be happening in 2017, 2018, 2019 and beyond. Commodities, crude oil, energy, commodity stocks and emerging markets and their equities and currencies will become strong again. This will catch 99% of traders and investors big time off-guard, unless they are sharp and smart to have a professional mentor guide them.
The neckline of the large distribution top of the USD has just completed. Already, 90% of the market majority herd are caught on the wrong side of the markets relating to the outlook for all asset classes since 2016 and 2017. This is an exact replica of 2012-2016 market cycle except that the replica is in the reverse now. Most people will be double wrong again.
The US Dollar Super Big Downwave Chart 2:
28 January 2018, Sunday, 12.37pm Singapore Time
(Click on Technical Chart above to Enlarge)
The attached above gives the most macroscopic perspective of the US Dollar. The US Dollar Index is expected to go down as a major wave to test for historical lows of around $80.00 again. It will likely go below $80.00 too. The US Dollar will create all time historical lows in the coming cycle (and people thought that money-tightening and rise in interest rate is supposed to bring USD up to the moon). The Trump-inspired trajectory down in the movement of the US Dollar will create a tsunami of stock market rally and commodities and energy market rally. In particular, stocks and equity markets of Asia will do a super rally of a lifetime. Now, is Trump and the US really anti-Asia or pro-Asia? Asia will have a super rally of a lifetime.
In particular, there will be a another big round of fishing-trawler style of scoop-ups from the rock bottom -- especially on commodity stocks (includes plantation stocks), energy stocks, crude oil related stocks, oil rig stocks, shale oil stocks, offshore oil and gas stocks, metal stocks, shipping stocks and shipbuilding stocks. With all these primary material class of stocks bullish, this bullish wave will be cascaded to all other sectors for impulsive wave of bullishness across the board (in equity markets for breadth). Finally, not only depth, even breadth will be coming now too.
In addition, as fore-warned in 2017 and 2018, a Gold price target of $1900-$2000 is guaranteed based on price structures on the Gold Technical Chart. Gold will rally with stocks, and Gold will rocket with acceleration if stocks crash, making Gold, Gold ETFs and Gold mining companies the NUMBER 1 PERFECT hedge and a MUST-HAVE in one's portfolio for protection against all directions. Yes, as ludicrous as it may be -- a protection against all directions.
The Donovan Norfolk Technical Rating:
Very Bullish
(Expected to rally for the rest of 2018 and into 2019)
Additional Note:
The Supercycle Chart of USD above is based on the historical data showing the broad price-adjusted U.S. dollar index published by the Federal Reserve. The index is adjusted for the aggregated home inflation rates of all included currencies. The price adjustment is especially important with United States' Asian and South American trading partners due to their significant inflation episodes of the 80s and 90s.
Past Related Analyses (MUST READ IN DETAIL):
