Tuesday, May 14, 2013

It's Time My Friends

It's time to put up or shut up! The US is certainly firing on all cylinders, unstoppable stock markets, rising treasury yields and a rising US dollar, oh my! I will speak of the dollar and GOLD this evening and I must look at two sides of this story. First, as far as the US dollar, could it be that IT truly is the less filthy of the filthiest shirts in the laundry bag? Some may have you believing that statement based on the FED looking to taper off of its quantitative easing- TO THAT I SAY HOGWASH!

My side of this nonsense is this- the FED cannot stop its QE program based on the fact that the Stock Market's wheels would come off immediately and most importantly-If interest rates were to allowed to rise, the United States of America would not be able to pay the interest on its debt obligations. I do not write this to entertain you, this is simply fact! So while everything looks hunky dory and all is well in THIS LAND- the time will come when everyone wakes up and the shit does hit the fan. Remember, it took this country 20+ years to figure out the great ponzi scheme that Bernie Madoff had going, how long will it take everyone to wake up to what the FED has been doing?

One quick story- I was asked by a friend yesterday, why I feel the way I do about the Stock Market being manipulated and the whole ILLUSION THEORY that I speak of. He could not have asked me this at a better time, my answer was very simple, as I gave him a perfect example of how this game is being played and he understood it perfectly. Here was my answer- this past Friday the stock market was down all day and it appeared we just might be seeing the start of a long awaited normal correction, that we typically see in freely traded markets. As the day was finishing and the volume lightened up the market mysteriously rallies into the close for the week. Monday morning, we have retail sales coming out with a dull expectation of a drop of .3%, the number is released and it comes in at a gain of .1%. With this we are given a headline that reads- Retail Sales Better Than Expected, do you see the trickery? Teetering on the brink on Friday morning and within a couple of days, the market is roaring a couple hundred points higher and we get some upward momentum going and the media then spews the BS out to the sheeple and the game continues! I saw this back in 2004 and knew a crash had to come and I have been seeing this game ever since 2009 and I am telling you it is going to end badly, I am involved with the markets on a day to day basis and I see first hand what THEY are doing.

Now on to the current market situation with the US dollar, let's take a look at the daily chart
I pointed out over the weekend that we may see 8380 and in my opinion, not much more than that. The high I have for the day was 8381, is that it? Only the market knows for sure but I think we will know more within the next 24 hours. I am sticking with my bearish stance for the medium and long term. Short term? The Cad has made new lows and is trading at 98 currently, by looking at the charts, 97 is certainly possible. The Aussie and Yen continue to be beaten down and I really have no interest in either of them at the moment.

Let's take a look at the Euro, this is a daily chart as well
In my opinion, we are in the support zone between 12880 and 12930 and I believe, or should I say am hoping that this level holds. Tomorrow is a busy morning with US economic reports- Industrial Production, Capacity Utilization and the Philly Fed report to name a few. I believe the verdict will be in on the US dollar by late US morning.

I am sorry not to put up charts on all the other currencies, right now I really wanted to focus on the Dollar and the Euro and I also would like you to take a look at GOLD, here is the daily chart
This chart does not look promising short term. Let's see if we can hold $1400 within the next 24 hours. If so and the dollar starts to fade from these levels, the interest in GOLD should start to pick up!

Again, It's Time for the dollar to show us what it truly is made of! Could be a dangerous day tomorrow or a good sign of things to come for us Dollar bears and Gold Bulls!

Be Safe!
Martin



No comments:

Post a Comment