A few wise words from respected trader J.B. Slear on this temporary USD strength and metals weakness.

Regards - VHF

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The Correction Has Started

J.B. Slear

March 10, 2011

...US$ is higher by 34.6 points trading at 77.065. My view on this is that most traders were short the US$. They have to be out by tomorrow and if they’re short, they have to buy back. There is no positive fundamental reason for a rally.

...We start Triple Witch Week on Monday. All my traders know this axiom but it’s worth repeating for years to come; Triple Witch starts this Friday when all Currencies roll over to the next contract quarter (June). Next week all the Treasuries expire going into the “Stock Markets” part of Triple Witch, which is the roll over and expiration of everything March in the Paper Markets. This is in essence a Bankers inventory run. They account for all their deeds every quarter. I will expect the US$ to rally as it is today and in general all markets will go in reverse or remain flat depending on the events of the past quarter. Yes I think there is a possibility of a weakened metals market. But I will also admit the metals pullback may not be as deep as the past, so we wait and watch.