SAFETY?

It is just shy of 11 here on the East Coast Monday eve, I hope you all enjoyed the 3 day weekend. I certainly did and and took advantage of the time and cooler weather to sleep in a bit more than usual, especially this Monday morning. We are not accustomed to consecutive 40 degree nights here in South Florida, thank goodness for that and I look forward to enjoying the 80 degree afternoons again this week. I am sorry to post this late at night, I was going to post earlier about something else and decided that I could wait until the morning but I am noticing a couple of things in a couple of markets that I would like to point out before I go off to sleep.

I mentioned last week that I firmly believe something is brewing underneath the surface, but only the Big Boys on the inside know what it is. I for sure do not know, but I suspect something BIG is about to come out and shake things up a bit. You know I am a bear on the dollar and think it is going alot lower but I cannot ignore what I see, please take a look at the dollar chart below- through my eyes it appears that it wants to go another leg higher. I laugh at the fact that the US dollar is considered a safe haven but until the market says otherwise, we must watch and listen to what the market is telling us. Please have a look and notice how the Dollar looks ready to break above 81

The other market I have my eyes on is the US Treasury markets. Again I am a bear on this market as well however with this you are fighting the Fed and the printing press. However the second chart is of the TEN Year Note. It is giving the appearance of a bottom in price right at the 131 handle which coincides with an interest rat of about 2.10 percent. Based on what I see through the dollar and the Bond market- they may be telling us something is going on that the masses will not like!

Now, I could be wrong about this but I just have this feeling Bonds and the Dollar are getting ready for an upside move. That leads us to the Ultimate Safe Haven of them all- GOLD, does the takedown have more to go? Could we see a major reversal from this 1600 level? I will keep you posted throughout the week, no doubt this should play out to be a critical inflection point!

Let's see what the first full trading day of the week brings! No more holiday for any Nation, should be an eventful week. I hope you find this post as helpful. Be CAREFUL out there!