I agree strongly. As of this writing the dollar index is under 78.76 and the dow is at 8900. People say "Wow look at stock market rise! Green shoots! We are in a recovery" and they are just dead wrong. It's inflation and nobody wants to admit it. I believe the stock market will go above 10,000 soon and most likely the dollar index will drop to around 70 give or take a few points. At that time, you can be sure that Obama will hold up his "mission accomplished" banner.
An economic recovery, weak as it may be, and higher stock prices are in the cards for as long as it can be financed; just like the housing boom. Keep watch on the gov't bond market(s).
I have to agree with this statement for technical reasons. Chart the Dow monthly for the last 50 or so years and you can see we are forming what could be the right shoulders of a large head and shoulders pattern. 10000 and even higher is certainly possible and it can take years to form (maybe until past the Obama re-election). But that day of reckoning will come. Once 7000 is broken, there is no good support levels until you reach the '87 bottom.
Yes, likely correct. The storm clouds are gathering. And the folks clamoring for an economic implosion will probably not be denied.