Most Important

Good morning, first I must start with an apology. Yesterday was a rough one to say the least, when I was writing in the evening, it was a little later than I normally write. When I was finished I simply just published it without proofreading it. I was mentally exhausted and maybe I should learn to turn my phone off when I write from now on. Anyway I would like to apologize for grammatical errors in my writing from last nights post! After the markets closed yesterday, I took an hour to lay down and try to relax, I guess I really did not give my mind the rest it needed.

It would have been nice to see Gold and Silver alot higher this morning but I was not expecting that anyway. Gold did trade up over 1570 early last night only to sell right off down to make a new low @ 1554.3. We are currently trading back over 1570. One thing I did not mention last night was Silver, considering the fact that Gold was down $40+, Silver showed great resiliency around the 2850 area. For now it looks like Silver has attracted value based buyers. Will the buyers hang around or step aside and wait for better prices. Time will tell!

I am giving you one chart this morning, YES it is the US dollar again. Right now I feel this is the most important market to watch that will help you make your trading decisions. The Euro is down below 132 now, it shattered solid support on some bad #'s out of Germany and the European Equity markets are down solidly across the board. The CAD and Aussie held up well overnight however this could all change and that is why I am posting this chart.

To go along with the dollar I want to point out that the US equity markets are only slightly negative before the open. Watch the US markets today, if they falter and I think they should, the dollar looks like it has more room to go on the upside. If equities hold and go higher today for some reason, then I would look for the US dollar to fall and you could buy the Aussie or Cad with some tight stops.

CPI inflation #'s came out as expected but when you strip out food and energy the number was hotter than expected, up 0.3%. Imagine that, no food or energy and we are seeing a bit of inflation through government statistics,ha. Jobless claims for the week were up surprisingly 20 thousand and now we have the sequester cuts quickly approaching, STAY TUNED!

More Downside to come in GOLD&SILVER? I am not sure, let us see how we behave today. Remember how quick they can turn around to the downside, just like last evening!

BE STRONG/ BE ON YOUR TOES

Martin