In previous posts, I have discussed the likelihood of the U.S. Dollar Index forming a major peak in early 2012. The validity of this assessment, as well as its long-term affects, will become painfully clear over the next few quarters as the prices of major commodities accelerate higher. In fact, my analysis also suggests commodities printed a major, cyclical low in late 2011. The markets are now delivering a confirmation of that low:
Commodities are unambiguously signalling that the dollar is toast. We are likely to see a swift break lower by the dollar in the very near future. By the end of February, people are going to kicking themselves for missing the launch of a major commodity rally. I believe the prices we see now... even the prices a month from now... will look like steals by the time the current 2.5-year cycle finds a peak.