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The US Dollar Bulls Are Falling For A DANGEROUS Trap...

February 3, 2017

As we have repeatedly warning, anyone who is betting on the Trump Presidency unleashing a massive $USD bull market in the near future is going to get taken to the cleaners.

This has already begun…

One of the single most dangerous traps for traders to avoid is a “False Breakout.”

False breakouts are moves in which an asset “breaks out” of a formation, leading many to believe that the move is legitimate… then suddenly KA-BLAM, the move reverses violently.

See the $USD today. This looks more and more like a false breakout, which means YES, the $USD is going to sub 90s if not lower within 12 months.

Those who believe Trump wants the $USD above 100 are not paying attention. Similarly, those who believe that the Fed can and will raise rates three times in 2017 are missing the big picture.

NEITHER OF THOSE IS GOING TO HAPPEN. And if you’re investing based on them, you’re in for a LOT of pain.

Originally posted on

http://gainspainscapital.com

Graham Summers

Chief Market Strategist
Phoenix Capital Research

Graham Summers is Chief Market Strategist for Phoenix Capital Research, an independent investment research firm based in the Washington DC-metro area with clients in 56 countries around the world.

Graham’s clients include over 20,000 retail investors as well as strategists at some of the largest financial institutions in the world (Morgan Stanley, Merrill Lynch, Royal Bank of Scotland, UBS, and Raymond James to name a few). His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Glenn Beck Show and more.