Some Follow Through

It is after midnight here in the US and I am in the mood to write. What an eventful day in the financial markets, Stocks down over 100 points, the 30 year Bond up almost 2 full points from its lows put in overnight and the US dollar coughing up all of its gains from yesterday and then some. I keep saying the Dollar is having a difficult time here above 84 and today is no different and I feel this move is very telling of where we are going next as far as the Dollar is concerned. Let us take a look at the daily chart

Ask yourself, doe this look like a market that wants to go higher? I certainly do no think so and with that being said, let's take a look at GOLD!

It is looking better and better now, we may start to see a nice move to the upside if we can get above $1400, which I have a gut feeling we may see tomorrow. We do have plenty of US economic reports released over the next 2 days, let's see how things develop from these levels to finish the week. The US dollar in my humble opinion appears to have run its course and I truly do not believe GOLD has much more downside going forward.

We are coming into the summer doldrums, maybe we will see a bit of back and forth action for the next few months, who really knows or maybe we will have GOLD go on a tear due to a falling stock market and a collapsing dollar. Could this be the start of a big move in both Gold and the Dollar? Stay tuned, no matter what happens do not let the markets get to you and try to stick with your convictions.

Keep your eyes on the US Bond market! I am not going to waste my time this evening bashing the stock market and the INVISIBLE HAND, with that being said, I say good night!