ForexSpirit

This week’s Economist has the falling dollar as its cover story. This can only mean one thing: the dollar is about to appreciate in value and we’ll see a nice correction against the euro rather soon.

Both the lead story and a more in-depth piece give a detailed look at the predicament that the dollar finds itself in.

Whenever the US dollar makes it to the front cover of a major magazine it’s time to batten down the hatches as it means that just about everyone is aboard the dollar bear train. The smart money will try to take the weak hands who come across this story for a ride; thus there’s a good chance of a dollar correction to shake out all the weak players who are looking for a fast buck shorting the dollar.

I was planning on reducing my gearing going into December anyway (to ward against any end of year dollar rally). Looks like I have come across another good reason for sticking to that plan.

I especially like the cover image that has the US dollar going down in flames.