<<But the trend in the dollar has changed. We are in the midst of a rebound in the US dollar>>
This guy must have a different view on what a trend is than i have. To talk about this before it even breaks the 200-day is just dumb. Buck is overbought on many indicators already and looks to go lower.
stockcharts.com[p,a]dicayyay[df][pb50!b200!i][vc60][iUb5!Lp14,3,3!La12,26,9!Lb14]&pref=G
<<After the article, Treasury Secretary Snow and a crowd of others came out and basically said the dollar did what 'we' needed it to do and the plunge is over. Technically speaking this spurred the run through critical resistance at 8485 and the market ultimately leveled off in the mid-85 area, only to test the lows again. The recent support, which incidentally was above the double bottom support, shows the biggest technical sign of all - the market was not willing to set fresh lows. So a technical analyst would look at this and make one of two conclusions - we are setting a narrowing channel (long term pennant) or the market developed bottom support and is heading higher. Either way, the dollar has seen its lows for a while,>>
Why?
This could just be a simple 3 wave correction high before new lows are set. The fact that stuff like this is written all over the place now makes it more likely that we see the 70s on the $DXY before any kind of real rally is possible. That would tie in with $480+ POG for the top of this run.
<<The bottom line is a move to 360 doesn't change the long term bullishness of the market. In fact it's a blip on the screen if you a true gold bull. If the dollar is even in a dead cat bounce it still enough to see that type of retracment.>>
Agreed
<<Face it. The dollar is set to move higher, and metals are long overdue for a small spec shakeout.>.
The small specs in the metal markets have been killed in both the metal and the stocks. Either junior golds move higher or are flat while gold comes down or gold is not going down. |
