Thank you for this chart of the US Dollar Index and some thoughts on its likely near term direction. What then can we guess will be the near term direction for both the stock market and gold? I would guess stock market down and gold up. Yes?
Also, I have read somewhere that the Fed's stated objective is to reduce QE to zero by the end of 2014. Do they have any wiggle room in slowing down the taper rate without upsetting the financial markets?
Calling short term direction in a manipulated market is tough. Based on where stocks and gold are at in their daily cycle counts then yes stocks should go down and gold should go up. Whether or not the Fed will allow stocks to drop is another matter.
Fed day.....don't want to see a "close" below $1260 with Gold today (a trading spike lower to test $1258, again is fine) as that would be a Bearish close, closing above $1272 keeps the bull move in play.........jj
Don't waste your time on the US$ Index Gary, its only had a 5 cent swing trade these past two years while golds had $600 price swings since 2012
I don't have any trades on in the currencies at the moment. You are right they have been locked in a tight range for almost a year and a half. Tough to make money in a market like that where nothing moves much, unless one is heavily leveraged. And I don't like to trade that kind of leverage, especially in currencies where CB's can alter the rules at a moments notice.
The importance of $1272 Gold....its either going to be the base area for another bullish attack at $1285 or its the rollover zone re-testing $1248.........jj
Thank you for this chart of the US Dollar Index and some thoughts on its likely near term direction. What then can we guess will be the near term direction for both the stock market and gold? I would guess stock market down and gold up. Yes?
ReplyDeleteAlso, I have read somewhere that the Fed's stated objective is to reduce QE to zero by the end of 2014. Do they have any wiggle room in slowing down the taper rate without upsetting the financial markets?
Calling short term direction in a manipulated market is tough. Based on where stocks and gold are at in their daily cycle counts then yes stocks should go down and gold should go up. Whether or not the Fed will allow stocks to drop is another matter.
ReplyDeleteFed day.....don't want to see a "close" below $1260 with Gold today (a trading spike lower to test $1258, again is fine) as that would be a Bearish close, closing above $1272 keeps the bull move in play.........jj
ReplyDeleteDon't waste your time on the US$ Index Gary, its only had a 5 cent swing trade these past two years while golds had $600 price swings since 2012
I don't have any trades on in the currencies at the moment. You are right they have been locked in a tight range for almost a year and a half. Tough to make money in a market like that where nothing moves much, unless one is heavily leveraged. And I don't like to trade that kind of leverage, especially in currencies where CB's can alter the rules at a moments notice.
ReplyDeleteThe importance of $1272 Gold....its either going to be the base area for another bullish attack at $1285 or its the rollover zone re-testing $1248.........jj
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