DOLLAR JUMPS UP
Monday, November 9, 2009
TODAY'S COMMENTS FROM DAN NORCINI
FROM JSMINESET.COM
Hourly Action In Gold From Trader Dan Posted: Nov 09 2009 By: Dan Norcini Post Edited: November 9, 2009 at 2:53 pm
Filed under: Trader Dan Norcini
Dear CIGAs,
The fallout from the G20 summit over the weekend was sharp and predictable – in the absence of any comments about the level of the US Dollar, currency traders began to beat it with an ugly stick within mere moments of the opening of the Forex markets. In the process traders drove it to a new yearly low and set it up for a sharp drop down to the 74 level on the USDX. There is a band of congestion on the weekly chart that appears between 72 – 74; we are in serious trouble if 72 falls as a currency crisis will be unfolding. That massive double top formation on the weekly chart projects an eventual move to as low as 54 should things get out of hand and the Dollar come under further concerted attack by the hedge fund community.
This is the reason why crude oil is acting in such a counterintuitive fashion, rallying near $3.00/barrel concerned over the indifference being displayed by the US monetary authorities towards the Dollar’s plight. Combine that disregard with the potential for another $trillion dollar health care “reform” boondoggle, and the endless string of debt production by the US governing rulers, and quantitative easing is going to go on indefinitely. One has to wonder if at some point the only buyer of US debt is going to be the Fed itself. Heaven deliver us from this madness.
The fade from session highs in gold towards the close is a minor cautionary note for short term oriented traders but the trend in gold remains solidly higher. After all, it is difficult to become too bearish on the gold market when the Dollar is a near free fall and the reset of the commodity world is screaming higher. Please refer to the 12 hour chart for some technical support and resistance levels.
One quick comment about the HUI – its rally has taken it within a few points of retracing the entire loss from July 2008 when the fallout from the derivative crisis began in earnest. The mining shares were tossed out along with the rest of the world of paper as the deleveraging process gathered steam but they have been steadily working higher. While still not moving in the fashion that many are looking for in the gold community, the mining sector has definitely been outperforming the S&P 500 as a whole.
Equities are rallying on easy money – that is all there is to it – nothing else. The very term, “jobless recovery” is an oxymoron that was created to describe the fallout from the creation of nearly unlimited $billions of dollars which have found their way to the trading desks of Wall Street. Maybe Goldman considers “God’s work” as making $billions from proprietary trading while only $millions from their core banking business but I suspect the Almighty is not particularly impressed.
Hourly Action In Gold From Trader Dan Posted: Nov 09 2009 By: Dan Norcini Post Edited: November 9, 2009 at 2:53 pm
Filed under: Trader Dan Norcini
Dear CIGAs,
The fallout from the G20 summit over the weekend was sharp and predictable – in the absence of any comments about the level of the US Dollar, currency traders began to beat it with an ugly stick within mere moments of the opening of the Forex markets. In the process traders drove it to a new yearly low and set it up for a sharp drop down to the 74 level on the USDX. There is a band of congestion on the weekly chart that appears between 72 – 74; we are in serious trouble if 72 falls as a currency crisis will be unfolding. That massive double top formation on the weekly chart projects an eventual move to as low as 54 should things get out of hand and the Dollar come under further concerted attack by the hedge fund community.
This is the reason why crude oil is acting in such a counterintuitive fashion, rallying near $3.00/barrel concerned over the indifference being displayed by the US monetary authorities towards the Dollar’s plight. Combine that disregard with the potential for another $trillion dollar health care “reform” boondoggle, and the endless string of debt production by the US governing rulers, and quantitative easing is going to go on indefinitely. One has to wonder if at some point the only buyer of US debt is going to be the Fed itself. Heaven deliver us from this madness.
The fade from session highs in gold towards the close is a minor cautionary note for short term oriented traders but the trend in gold remains solidly higher. After all, it is difficult to become too bearish on the gold market when the Dollar is a near free fall and the reset of the commodity world is screaming higher. Please refer to the 12 hour chart for some technical support and resistance levels.
One quick comment about the HUI – its rally has taken it within a few points of retracing the entire loss from July 2008 when the fallout from the derivative crisis began in earnest. The mining shares were tossed out along with the rest of the world of paper as the deleveraging process gathered steam but they have been steadily working higher. While still not moving in the fashion that many are looking for in the gold community, the mining sector has definitely been outperforming the S&P 500 as a whole.
Equities are rallying on easy money – that is all there is to it – nothing else. The very term, “jobless recovery” is an oxymoron that was created to describe the fallout from the creation of nearly unlimited $billions of dollars which have found their way to the trading desks of Wall Street. Maybe Goldman considers “God’s work” as making $billions from proprietary trading while only $millions from their core banking business but I suspect the Almighty is not particularly impressed.
GOLD RALLIES IN EARLY AFTERNOON TRADING BUT IT FADES
EURO REFUSES TO MOVE HIGHER
STOCKS UP 190
DOLLAR RISING
YEN SLIPPING
BONDS RISING A BIT
GOLD NOW MAKING HIGHER HIGHS ALONG WITH HIGHER LOWS, BUT THIS UPTREND CHANNEL COULD COLLAPSE AT ANY MOMENT
STOCKS ARE STALLED ON THEIR HIGHS AND COULD
SELL OFF ANYTIME
OIL IS UP
EURO IS TURNING BACK DOWN SLIGHTLY
DOLLAR IS CHOPPING ON ITS LOWS
GOLD MOVES ABOVE THE BLUE DOWNTREND CHANNEL
STOCKS, OIL MOVING UP
EURO PLATEAUING NEAR ITS HIGHS
BONDS MAY BE TRYING TO TURN DOWN
DOLLAR VERY WEAK
SO WHY IS GOLD GETTING BEAT DOWN?
MANIPULATION AT THE CRIMEX, THAT'S WHAT
GOLD RETRACES UP TO THE NEXT 75% POINT ON MEDIUM/LIGHT VOLUME AND PULLS BACK
AT LEAST GOLD DIDN'T MOVE LOWER, SO NOW
IT MIGHT GO UP FURTHER AFTER THIS NEXT PULL BACK
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