Well, that was fast. This daily cycle for the US Dollar topped on Day 4 and just minutes ago it traded below the 76.12 level that would represent a failed daily cycle.
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And today is just Day 8.
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The implication, of course, is that the dollar is indeed going to be heading south for some time and that is just what we need to fuel the final parabolic of gold and silver.
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Click on the chart to ENLARGE
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gold miner:if market goes down,miners will follow.so i think parabolic rise gold sent .com want is just wishful thinking.
ReplyDeleteif this is true, why are gold and silver crashing with the USD?
ReplyDeleteIf I had to guess, I imagine huge money interests are getting big margin calls on their Yen carry trade positions. They need to liquidate assets to answer the margin call that is due to the skyrocketing Yen.
ReplyDeleteAs for miners, study carefully Q1 2008, as it appears to be something of a carbon copy of where we are today.
The S&P was then just beginning to roll over into a protracted bear market leg that eventually took it to 666.
The dollar fell from 78 in mid-December 2007 to 71 by mid-March 2008. Meanwhile the miners ($HUI), in the same time period, rocketed from 375 to 520 - a gain of 38% coinciding with the gold and silver parabolics of 2008.
Incidentally, the S&P 500, in the same time period, plummeted from 1525 to nearly 1250 - a drop of 275 points or 18%.
Believe it or not, it is possible for both the stock market and dollar to crash while gold and silver and their miners make a huge move higher.
Thank you for your question.
John,
ReplyDeleteThat sure is a beautiful head and shoulders pattern of the dollar index. Now if we can just get it to break the neck line at 76.
Doesn't it seem strangely rediculous that it took and earthquake to save the dollar and give it a few more days to live?
Hi John,
ReplyDeleteI have sold 1/2 of my AGQ last night. It has since dropped even further. I am looking to get into full position again. Do you have any suggestion on the next entry price?
Thanks.
John, yes the repatration of Yen by Japanese insurance companies,et al, has put a bee in the bonnet of those carry trade players and this was a strong driver in the markets today. I hope this will give cause to get those hedgies short on the PM miner incentive to cover.
ReplyDeleteFung -- well, you know me. I don't sell when I get under water. I wait. At least usually. AGQ - I guess it all depends on how quickly the Japanese can get control of their nuclear reactors. So long as there is this profound uncertainty all asset classes are under intense selling pressure. I do think that once the uncertainty is allieviated gold and silver will begin their parabolic move.
ReplyDeleteSilverwood -- once the world grasps that the mighty US Dollar is going down for the count there will be so much liquidity hit the hedgies it will flatten them out like a pancake.