GUDD?
Up until this Monday, I had been long Gold e-minis and Long USD vs CHF and EUR. I was stopped out of my gold position.
I was confused which way things were going to turn, as usually Gold strength/weakness has been synonomous with Dollar Index weakness/strength.
I think Monday confirmed that we are seeing Dollar strength not just against other Fiat Currencies but also against Precious Metals.
To those who are betting against the Dollar (at least against other fiat currencies - $USD) I would be careful.
On the technical.
stockcharts.com[w,a]wacayyay[de][p][vc60][iLe8,21,13!Lp13,3,3]&pref=G
1) We breached the October high yesterday.
2) There is a bullish divergence in Weekly PPO.
3) Sentiment is massively dollar-negative.
In short we should 'close' the gap at 95 - the G7 communique to allow Asian FX rates to be market-determined. I believe that there is more upside, but 1 step at a time.
For those betting against the Dollar versus Gold.
Dollar strength is not as obvious as it is against other Fiat Currencies, but on the warning side
stockcharts.com[w,a]wacayyay[de][p][vc60][iLe8,21,13!Lp13,3,3]&pref=G
1) Intermediate term Gold-Bullish momentum is weakening.
2) $GOLD did not 'confirm' the Oct high of $HUI/$XAU - not a worry unless $GOLD closes below Oct lows.
In short
1)$USD appears to have reversed vs. other Fiat.
Looks like those Asian CBs just can't stop buying the stuff.
2) If Gold < 366 then the Sept high ($AU) and Oct high ($HUI) could well become the highs for some months to come.
This level is important as we could simply be consolidating sideways.
Who would have thought it?
TEOTWAWKI may be postponed - again!
-macavity |
