One of the charts I enjoy in EWI's Short-Term Update is the US dollar versus sentiment. It has proven to be a reliable contrary indicator. Monday's issue showed that just about everyone hates the US dollar (and, given its performance, that is no surprise):
The red "8.7" figure – a record low on this chart – shows how miserably low sentiment is toward the dollar.
The good news for the bears, if this contrarian notion pans out, is that a strong dollar will weaken most other assets (including equities). The EUR/USD has been quite strong since March 3rd, and is has brought the entire stock market up with it.
