By Joshua E. Stone
After the way the market has behaved over the last 2 months I am thinking the top is in for the dollar. I am hearing many traders expect gbp/usd to fall next week on bad data after a mind numbing run up from the 1.35 handle. This should present a good chance to start getting the market set up for an eventual run on everything not the dollar, like gold, silver ect.
The porkulus saga in Washington will also drive markets down as fear mounts over whether they get something passed, again this should help drive the markets into a good position to start setting up the big bubble transfer from treasuries to commodities once this behemoth is eventually passed.
How long this process will take is harder to guess at, but the charts are talking. We have weekly support on the eur/usd, gold and silver. It’s just a matter of time before the oil starts to head up on anticipation of spring demand.
So I am waiting for the drop coming in the S&P and gold, and then I will be looking to go long stocks gold, silver, eur/usd ect.
A close below the 800 level in S&P and/or Gold on the weekly chart negates this speculation.
- ▼ February (4)
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