Pattern Recognition

If you see the blue and the red box - you can see a pattern that is very similar.


Blue is 2007/08 and red is as of now.


Watch the dollar drop in 3 steps in both cases.
Then watch it rise a bit.
Then again watch it drop.
The funny part is it looks very very similar in form which is what we just saw.
The interesting part is that the social mood is also exactly the same in both the boxes.
In 2007/08 people were calling for the crash and collapse in dollar and they are doing the same now.
The 2008 low was the lowest the DXY has ever been but we all know how that turned out when the credit crisis broke in 2007/08.


If patterns do repeat - in other words when humans herd - they will produce the exact shape and form we saw in 2008 later on.


So let us wait and see how the next 6 - 9 months pan out for the dollar.


Also please note than in 2007/08 DSI bulls on dollar were in low single digits - it is exactly the same now.


We saw 5% dollar bulls as of last night.


So sentiment - shape and social mood are all repeating in exactly the same style.


I am sure the outcome will also be the same.