The following article is based on analysis from Robert Prechter’s Elliott Wave Theorist. For more insights from Robert Prechter, download the 75-page eBook Independent Investor eBook. It’s a compilation of some of the New York Times bestselling author’s writings that challenge conventional financial market assumptions. Visit Elliott Wave International to download the eBook, free.
By Nico Isaac
If you want the latest news on the U.S. Dollar Index, try a search under its new ticker symbol, RIP. -- as in, "rest in peace." Let the record show: In the early morning hours of Tuesday, October 6, the mainstream financial community officially declared "The Demise of the Dollar" (The Independent).
The "coroner's report" cites these details as the causes of death:
- An alleged (and later denied) secret meeting among leaders of certain Arab States, China, Russia, and France which aimed for the immediate discontinuation of oil trading in U.S. dollars.
- And, an open statement from one senior United Nations official that proposed the dollar be replaced as the world's reserve currency.
In the words of a recent Washington Post story: "The growing international chorus wants the dollar replaced... a move that would end the greenback's six-decades of global dominance."
Before You Mourn, See The Following Chart
And with that, the line between negative sentiment -- AND -- "EXTREME" negative sentiment was crossed. It occurs when the beliefs about a market lean so far over in one direction, that the boat investors are sitting in is about to tip over... Just like the last time.
