New Week

Late Sunday night and the markets are trading for a few hours, I hope you all enjoyed your weekend. Two charts I will share now are both weekly time frames of the Dow Jones and then the US dollar.

Impressive both charts are and I am sharing the weekly's because the larger time frame charts give a better picture for what is really taking place. First the Dow aka Humpty Dumpty, truly amazing, as I mentioned on Friday, it has rallied 1600 points to start the year. And then we take a look at the dollar, although I did not see this one at the start of the year, I am impressed at how the dollar is strengthening. I was confident we were headed down into the low 70's on the dollar index and I still am. Does the dollar have more to go on the upside? It could head higher if the Stock Markets start to falter.

It's a crazy world out there and it is extremely difficult to come up with true explanations for why some of these markets are trading where they are today. What I do know is that US DEBT keeps piling up and our government cannot work together to come up with a plan to start fixing the problems. As long as the Stock Market keeps going up, the problems are not being addressed and we are being taken as fools. When the dollar takes a major u-turn to the downside, and I am confident it will soon, it will tell you what the rest of the world thinks about The United States of America and its DEBT.

The Stock Market is just too easy as of late and I know this game is not intended to be easy, it is playing out perfectly for everyone to see but I have a newsflash for you- THE WORLD IS FAR FROM PERFECT! Be Careful and on your toes, better to be early than 1 second late.

GOLD is looking like the most hated investment asset out there and Stocks are being touted as the best game in town. A good trader once told me- BUY IT WHEN YOU HATE AND SELL IT WHEN YOU LOVE IT. I can't remember a time in the past ten years that GOLD has looked and traded so bad and I can say I truly hate what it has done to start this year. I do remember back a few years, our economic leaders were on the TV saying that this is the greatest global economy ever seen. That was 2007, right before the whole world came to the brink. The only thing that has changed from that time is the fact that the World is amassed in DEBT and it is getting worse as each day passes by!

You are not going to make money reading headlines and listening to the cheerleaders on TV. The Chinese encourage their people to buy Gold and Silver, here in the States you are encouraged to give your money to Wall Street. The wealth in this world buy GOLD, SILVER, even Art and Diamonds as these tangible assets are holding and appreciating in value relative to paper fiat currencies. I will have more on what the Central Banks printing policies are doing to the value of our money, later this week. As for now, I am off to a good night sleep.

Good Night
Martin