Darleen, the tiger is about to bite some of those who are trying to ride it.
USD turning up
stockcharts.com[l,a]dalaynay[de][pd50,2][ilb14!la12,26,9]
POG turning down
stockcharts.com[l,a]dalaynay[de][pd50,2][ilb14!la12,26,9]
IMO, there's going to be some interesting and very confusing play now as, despite the US twin deficits and all the bearish talk about the dollar and the US itself, the USD starts rising. Indeed, what I think is happening is that Europe and Japan have "chickened-out" of the squeeze play of the USD devaluation / Euro-Yen revaluation and are buying dollars again. If this is so, then the recent lows on the dollar and highs in gold should mark their end points for a while. Meanwhile, because they have been wrong-footed, one can expect some really desperate "end of the world" prophesies coming from the gold messiahs and the dollar bears. |
