It's open season on the $USD, Bill. First the G-7 Communique. Next China raises rates. Bernanke's testimony. The WSJ article stockman gave us. All point to a change to non-support of $USD. Traders can take it down if they wish and they are doing so.

I would go long XLB, XLI sectors and Gold.

here is my USD index TA :
http://globalgold.blogspot.com/2006/04/usdx-e-waves-gold-euro-update.html

I am going to continue to watch the miners for profit-taking (HUI and XAU). Holders are not being rewarded for the risk here in my view. Caution is warranted. Better returns are in the juniors as Bill has pointed out many, many times.

Thanks Bill for your hard work and this wonderful blog.And thanks every one for your thoughtful inputs.
My question is if the precious metals and base metals will move along each other in this journey? Will it be possible at some time down the road that precious metals keep going up but base metals peak or start to drop?
Thank you very much for your comments. This community is very educational.

For two weeks now you would have been better off in GLD than in the XAU and HUI on a risk/reward basis. I think that caution is warranted and that a pullback to 630-635 area looks like it would have good support. A deeper pullback may be necessary before normal risk/reward returns to the major gold indices. JMHO.

The broken record weighs in again. XAU and HUI have hit a hard wall. Ratio to metal CONTINUING to deteriorate. Individual selections may provide some returns but, as a group, not performing as desired, and certainly not for the downside risk here. JMHO.