4 replies to this topic

[Mike]

The Euro appears to be breaking down and since it is usually the inverse of the dollar (& positive w. gold), we might expect the dollar to rally. Looking at the dollar, it looks like it has formed a bullish flag formation which would project to 92.74. Lately gold's positive relationship with the euro has reversed, however, since gold is now overextended, perhaps it will pull back, being dragged down by the euro, and test the breakout from that big flag. Maybe the positive relationship with the euro will be reestablished as they both complete downside moves. Meanwhile, the dollar could rally and fulfill it's upside move. After all this, the euro could bounce off support and continue it's longer term rally. And that big flag on the gold chart might take over and send gold to a final (for this stage) high. If you followed that, give yourself a gold star. If this all plays out, send me one!

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[SilentOne]

Hi Mike,

Got that one. In fact there are a few flags out there IMO.

Flags

cheers,

john

[senorBS]

Senor's amigo told him today his 20-day sentiment reading is now at a new 17 year extreme of low numbers of Bulls. It is way below any previous 20-day low, and gold had uno grande bear 20 yr bear market market. Is this a wave Dos delclne that creates more bearish sentiment than seen in the depths of a Bear market? Makes Senor do some grande pondering. BSing away. Senor

[senorBS]

Senor's amigo told him today his 20-day sentiment reading is now at a new 17 year extreme of low numbers of Bulls. It is way below any previous 20-day low, and gold had uno grande bear 20 yr bear market market. Is this a wave Dos delclne that creates more bearish sentiment than seen in the depths of a Bear market? Makes Senor do some grande pondering. BSing away. Senor

[Regent]

Senor, please feel free to think aloud (or by typing) This overly bearish sentiment may portend the discovery that the US economy isnt as healthy as the job numbers indicate, that an imminent interest rate hike may be nixed, and that the USD will soon resume its descent. Will Thursday's PPI and Retail sales give Mr. Greenie reason to pause?