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Dollar Rallies Ahead Of Employment Report, Says Dr. Joe Duarte

Posted on: Fri, 05 Feb 2010 07:32:11 EST

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Feb 05, 2010 (FinancialWire via COMTEX) --

(Comment on this article at http://www.financialwire.net/2010/02/05/dollar-rallies-ahead-of-employment-report-says-dr-joe-duarte/)

Duarte added: The markets are fixated on the action in the S&P 500 and the big name stocks on the Nasdaq. And we agree that the damage in the stock market is starting to be significant. Yet, a more important trend may be the reversing of the downtrend in the U.S. Dollar as a multi-year slide in the greenback may have started to reverse.

The 200-day moving average is the line between bull and bear markets, and the dollar is now technically in a bull market as it has crossed above it, based on the U.S. Dollar Index. To be sure, it's early in the game, and things could change, especially on Friday if the employment numbers are not dollar friendly.

Yet, the dollar has a lot going for it. For one thing, Europe has three countries, Spain, Portugal, and Greece, that are in deep fiscal trouble. Japan is also increasingly weak and vulnerable economically. And the U.S. economy, barring a double dip, looks to have stopped falling, or at least seems to be contracting at a slower rate.

With all the potential trouble spots in the world, and everyone hating the dollar, it seems reasonable to assume that this is the proverbial blood in the streets buying opportunity for the dollar.

Duarte's conclusion: Stock investors rarely look at the U.S. Dollar as a possible investment vehicle. And that's been a good bet for nearly a decade. The point is that things may be about to change.

Disclaimer: Dr. Duarte owns shares in UUP.

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Duarte partners with the Investors Resource Center at Investrend Information (http://www.investrendinformation.com).

Duarte's IntelligentForecasts.com (http://www.intelligentforecasts.com) provides free news coverage and analysis, and his daily articles and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Duarte has combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.

He is the author of: Futures And Options For Dummies, Successful Energy Sector Investing, Successful Biotech Investing and co-author of After-Hours Trading Made Easy. In early 2001, in Successful Energy Sector Investing, he correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States. He has also appeared as a weekly guest on Market Mavens Radio and has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.

One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990. His articles and commentary have been featured on CBS Marketwatch, Barron's, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines. In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.

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