Originally published by Chamber of Merchants
Something’s not right…
(Updates below at P.S)
I’ve noticed a few things… Divergences… Little bits of news… Bits and pieces… that make me wonder whether my posts about being cautious in the general stock market are starting to play out… which would be (finally) good for gold.
Divergence: Gold and Dollar
The dollar is at a 14 year high… when it was above 103 a few days ago…gold was at $1120 something… Now gold is at $1136.
The downward trend in gold is buckling (so it seems)
Look at December 16th Above and Below… Now we’re back at the same dollar level, except gold has bounced back…
More worrying is the fact that bitcoin has jumped $10 since I mentioned it 2 days ago (do I have that much klout?)
Silver bounced on a record high dollar. What is this signalling?
Chinese turmoil in bonds could blow out of proportion … No matter was has happened so far…the PPT have saved the market…it has meant that no matter how bad the news, we can pummel into stock because it’s fool proof…
Everybody is waiting for the Dow Jones Industrial Average to hit 20,000.
I’m running for the hills hiding in a gold mine… I like the view from there.
I’ll update you as I notice more…
P.S the AUD/USD is a welcome buffer indeed.
Update:
The dollar just dropped 30 points in 30 minutes…
Euro Bouncing Hard
Yen is strengthening against the dollar (lower is stronger):
Article:
In the weeks since Donald Trump was elected president, US financial stocks (and energy companies) have soared with all eyes on Dow 20k. However, across the world’s capital markets, investors have lost a combined $1.2 trillion in debt and equity values, as the bond losses have outweighed stock gains dramatically (especially post-Fed). The question is – what happens next?
http://www.zerohedge.com/news/2016-12-20/trumps-trillion-dollar-loser-what-happens-next
Thought:
Many news articles are saying don’t worry… Santa Rally is still coming…. Isn’t that what we had over the past 2 weeks?
Like I said previously… If I’ve got gains… I wouldn’t get greedy and still expect Santa to arrive.
“Kids, Santa’s not real.” (I’m sorry Santa, please forgive me.)
I would simply use stop losses to make sure I keep what I have…
Greed promises you more and takes everything in return.
Dollar’s Double Top?
If this is a double top, then we can expect an acceleration of Dollar sell-off.
Irony
… Just as mainstream Reuters declares Dollar “basking in glow”…
“Dear Reuters……the dollar can’t glow…it’s got no gold in it… paper does glow when it burns though..”
DOW 20K
Is the Dow 20,000 mark a lure for the masses to buy and feel good while the big boys load off to us common folk…?
Got gold?