Hold Your Horses,Dollar Gaining Strength, Why buy now?
carew4me
Posts: 3,470 ✭✭✭✭
Dollar is in bull cycle with no plans to weaken. Hold off on purchases.
PMs heading lower. What was considered a fantasy a few years ago will again be true as your are
able to purchase $250-$300 SAE rolls and $700-$800 Gold.
PMs heading lower. What was considered a fantasy a few years ago will again be true as your are
able to purchase $250-$300 SAE rolls and $700-$800 Gold.
Loves me some shiny!
0
Comments
Knowledge is the enemy of fear
<< <i>The dollar has been going up for 3 years and bottomed 6 years ago. >>
On top of that the commercials held a net 59K short position in dollar futures (14.7 to 1 short to long ratio). This is about the highest ratio they've reached in the past 5 years or more. They've been stacked "all-in" to the short side for about 6 weeks now. Apparently they don't think the dollar is screaming higher for the foreseeable future. While they are sometimes early in ratcheting up their trades, they are rarely wrong for all that long. I think the last time the commercials stacked this short was during the end of the major dollar rallies in either 2009 or 2010. And both of those times the dollar retraced a very large % of the up-move. The commercials aren't dumb.
The dollar has lost momentum the past 2 months while it has moved higher in price. Not a positive sign. It's also gone up approx 6 months w/o a breather. In looking back over the past 3 years, most rallies only went 3-5 months before taking a decent pull back. You have to go back to 2008-2010 and even then the two longest vertical rallies w/o an appreciable pull back lasted 4-6.5 months. The weekly RSI on those 2 massive rallies never got past 80.00. The current rally made it to 87 already....and stands at 76. I also see a 24 month expanding wedge pattern (ie megaphone) in play. Those are unstable patterns that typically break lower approx two-thirds of the time. That wedge could always go higher though. Look at the first half of 2013 to see where that expanding wedge led to. There's also a 5 week wedge now in play too. The dollar has also typically put in strong peaks every 8-12 months. This current rally is up to 16 months. Certainly stretched on a number of levels. But, like anything else it could still go a lot higher too, especially if the May 2014 bottom was a 3 year bottoming. The current black weekly candle (if it closes the week as such) would be a sign of a top or a transition point to trend higher.
3 year dollar ETF chart (UUP)
Sure looks like a lot of distribution (volume) days in late Sept to mid-October
<< <i>Hold Your Horses,Dollar Gaining Strength, Why buy now? >>
USD gaining strength sounds like the understatement of the year right now. Can I get a "Like"?
The jury is still out. But it looks like it's possible that the "no end in sight" dollar rally might have just ended on today's job's report. RIP dollar? The dollar and gold have rallied for months at a time in the past...it's not impossible for it to happen again. The USD/JPY and AUD/USD pairs are better correlations for gold movements than the USD. Watch them.
Next question. Do you wait for PMs to come back before buying or let them get higher and then chase after them? Hmmm? j
<< <i>The jury is still out. But it looks like it's possible that the "no end in sight" dollar rally might have just ended on today's job's report. RIP dollar? The dollar and gold have rallied for months at a time in the past...it's not impossible for it to happen again. The USD/JPY and AUD/USD pairs are better correlations for gold movements than the USD. Watch them. >>
There remains a very strong inverse relationship between the dollar index and gold. Considering the euro (57.6% of the dollar index's weight) and the yen (13.6% of the dollar index's weight) continue to get hammered, the near term outlook for the dollar index is very positive. Concurrent rallys between the dollar index and gold tend to be short lived with gold eventually suffering. The best short term hope for PMs is a moneymaster decision that a strong dollar is taking too much of a toll on exports and jobs and a resumption of a currency "race to the bottom." I suspect our current strong dollar policy is a "sanction" against oil producers who have dared accept non-dollars for payment - it is hurting their currencies.
Note that in the job's report that 1 out of 5 of the new jobs was for a bartender or a waiter/waitress. Not very promising for the long term employment outlook as most of these were most likely white collar professionals settling for what they could get. Have you noticed the rapidly increasing age of your server at the local hamburger outlet?
<< <i>Do you wait for PMs to come back before buying or let them get higher and then chase after them? Hmmm? >>
Beforehand confirmation is always nice. Chasing them up is way much better than chasing them down.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Next question. Do you wait for PMs to come back before buying or let them get higher and then chase after them? Hmmm? j >>
the odds favor a backtest & then major failure???...
Coinfame,Kaelasdad,Type2,UNLVino,MICHAELDIXON
Justacommeman,tydye,78saen,123cents,blue62vette,Segoja,Nibanny
<< <i>So do we buy now? >>
Bought a little Argetntum Wednesday night and some Aurum today.
<< <i>So do we buy now? >>
time...
<< <i>
<< <i>So do we buy now? >>
time... >>
Time is free yet it is the most valuable asset any of us possess.
Knowledge is the enemy of fear
<< <i>So do we buy now? >>
not me. dollar poised to dominate currency markets next year.
I see $12-$13 Ag. I will buy sub $300 SAE rolls with both hands.
Loves me some shiny!
<< <i>To steal an idea from Andy Hoffman, if you plan to convert "X" FRNs into physical, why not convert 1/3 or 1/2 "X" now (balance at your target/bias), just in case the market moves against you?
Cheers, >>
Lots of things getting cheaper in terms of dollars right now. I'm interested to see if lumber prices will go down .
<< <i>
<< <i>So do we buy now? >>
not me. dollar poised to dominate currency markets next year.
I see $12-$13 Ag. I will buy sub $300 SAE rolls with both hands. >>
Thanks for this response. I am just a simple man. Not a Jedi...just a simple man.
Coinfame,Kaelasdad,Type2,UNLVino,MICHAELDIXON
Justacommeman,tydye,78saen,123cents,blue62vette,Segoja,Nibanny
<< <i>To steal an idea from Andy Hoffman, if you plan to convert "X" FRNs into physical, why not convert 1/3 or 1/2 "X" now (balance at your target/bias), just in case the market moves against you?
Cheers, >>
< $300 SAE ROLL = BOTH HANDS
CURRENT PRICES = 1 HAND
Loves me some shiny!
Chasing up after PMs is no better than chasing them down. When you chase them up they invariably correct to below your entry point. Then you sell off in a panic only to see them reverse and leave you chasing after them again....and again....and again. One method that works is to buy on considerable weakness...and each person's definition of that could be quite different.
But that would never happen, right?
My Adolph A. Weinman signature