Big BEN Delivers

As I suspected yesterday, Big Ben did his best today to massage the stock markets. The Dow closed up 115 points and the S&P 500 up to 1496 erasing half of yesterdays losses. I will throw in the fact that consumer confidence did come in much better than expected early this morning along with robust new home sales. Last month I devoted a whole post to consumer confidence, as a refresher I will just say consumer confidence is in the toilet compared to where it was 10 years ago. Today the number came in at 69, when we start to see numbers  above 85 and towards 100, that will tell you that the consumer is feeling good about the economy!

Europe is all of the news and will be blamed if the US equity markets falter, it has been the scapegoat for the past 3 years now. The fact is the whole world is a mess but you wouldn't know that if you were looking at the stock market. From what I understand, as long as the Fed keeps printing, Stocks may keep rising but I for sure would not want to take my chances. Please and I will keep repeating myself and this is the main reason for me writing- THE STOCK MARKET IS NOT REAL, INTEREST RATES ARE NOT REAL, GOLD SHOULD BE MUCH HIGHER THAN WHERE IT IS TODAY. If you believe everything you see in today's financial markets, you are being fooled and need to WAKE UP!

Onto today's currency opportunities and what I see. First the US dollar, here is a daily chart, as per my last post, I am of the opinion that the dollar does not have much more upside. If it does break above 82, I AM WRONG- bottom line. Have a look

As for the Aussie, not a good day but I still would be a buyer and holder with stops at 10150. I mentioned yesterday the 102 handle, we did make a low of 10183 today but popped up 40 points or so with the help of US equities. I would have to credit weakness in the Aussie and other currencies due to cross trading against the Japanese Yen. The past two days have seen a massive up move in the yen, which was long overdue if I must say so myself. Here is the daily on the AUSSIE and you can see why I have an interest. I am looking at low risk and much more reward.

The CAD chart is looking much more promising to the upside. This did hold 97 for now and I am thinking with today's trade we may have forged a bottom around the 97 handle. Again low risk from this point. Have a look at today's daily

I have been saying quick and nimble quite a bit as of late. I want you to understand that when I trade, alot of times I get in and out especially with currencies, metals and most financial products, the world is a crazy place and their are more risks associated with the financials than anything else, at least bI think so! I am saying this because usually when I do a currency trade I give it a few hours and sometimes less, if the market is not doing what I thought it was going to do in a certain period of time, there is nothing wrong with getting out. This is a good way to manage your risk, you can always get back in if you have money in your account! Right now I believe the dollar has topped and the AUSSIE & CAD are great buys, and there is always that HOWEVER, if the stock market starts falling from here, I MOST LIKELY AM WRONG.

Lastly, let's look at GOLD. Great Day and I guess it was obvious that the money printing will continue. As I have been saying, THEY CANNOT STOP and more than likely will have to continue printing to keep the ILLUSION of a growing economy through BS stock markets. They did a number on the Gold community, including myself these past 2 years and especially in the past few weeks. I stick to my convictions and paid a hefty price and I must say I did not participate in this trade today! Upset, maybe just a little but I will not chase nor did I miss much, let us see what tomorrow brings. It will be nice to see Gold remain above 1600, the longer it does, the greater the chance we have seen a major bottom for a very long time, we will see and go with the flow. I will feel better seeing Gold above 1630 and Silver back above 30. I am only posting today's chart on Gold to show you why I say to BE CAREFUL

You can see how Gold first traded above 1600 overnight and then chopped between 1590 and 1600 for 6 hours, then a sharp drop to 1583 as Bernanke started and then the shorts had their faces ripped off. Just as you think it is headed for another plunge, BAM she's up $30 before you can blink. This is why in Gold I have a hard time giving up my long positions or trading with tight stops. I said yesterday to watch for the chop on both sides of this market, I am not saying this is going to happen but I will not be surprised if all of today's gains are gone tomorrow. We shall see, the one thing I do know, is that I am grateful for these bargain prices!

Good Night All
Thank YOU