US Looks Like #1

Well, it is Sunday morning and my head is still shaking with these markets. It has been said, "tell the lie and keep telling the lie and everyone starts to believe the lie as truth". Today I will display a few charts to show how the financial markets have been manipulated to make the US look like KING above the rest of the world. I am going to start with the US dollar and then I will show some of the other major currencies. I am not going to break down each currency, I just want you to see the weekly charts and you should get the idea of how badly they all look.

To my dismay, the US dollar did finish the week with a breakout above 84. I could live with this if the US had some strong economic indicators come out this week, but the fact is all the numbers that were released came out worse than expected, except for the Consumer Sentiment survey that is based on one state, that being Michigan, and it is released every Friday. Point is, this is a survey that is done weekly in one state and is not a major indicator for the country as a whole! Take a look at the dollar

Now that we are above 84, we may see the dollar technically trade up towards the 88-89 area. I honestly do not see this happening, but it just may and I will not fight the market. Trader Dan had a great post this week on the chances of a Dollar weekly breakout and it appears this is what has taken place. The best explanation for the breakout is this, the US stock market appears to be the best place to be right now in the financial world for yield on your money based on the theory that the FED will be there to support to support the markets in case things start to falter in the US economy. My Take- the whole world has gone mad and this will end up being the biggest bubble known in the history of man! If you are going to base your investments on the dependence of the US FED, you are losing your mind and in the end, you will be sorry!

I will skip the rest of the currencies because now I must show the Dow Jones weekly chart to display what I just said above. Please take a look at this madness

Nothing goes straight up and if it does it will come down twice as fast as it went up. We are 5 months into the new year and the Dow has NOT gone down 3 days in a row ONCE this year, if you think this is normal, please send me some of your meds!

Alright enough of that, now its time for me to say I was wrong about the $, the Euro, the Cad. Let's watch how we start the week and see if the dollar follows through to the upside. If the dollar is headed to the upper 80's, you can see the Euro down closer to 120, the CAD and Aussie down to the lower 90's. The Aussie and Cad both got hit hard early Friday, I keep questioning global growth but another way to explain the madness is this-If people from other countries want to buy into the US stock markets, they have to exchange their currency and buy US dollars- its all money flows and this could explain the strength in the dollar. Here is some weekly charts on the currencies and you can see the direction they seem to heading if this Dollar surge continues. I even included a chart on the British Pound as this is a currency that may turn out to be a good short with the chances of seeing a quick fall down toward 140 if it does break the 150 handle.

Please, just remember to click on one of the charts and they will all come up and you will get a close up look. Based on what we are seeing it certainly appears the race is on, to the bottom to see which currency will get their first. Which brings me to GOLD, supposedly the worlds ULTIMATE CURRENCY. I say supposedly because you would think with all the Central Banks printing money to no end in sight, GOLD should be exploding to the upside, think again. Look at this

NOT looking good at all my friends and as long as this game continues with the US stock market, I am afraid Gold will be contained and I have NO interest! No interest in trading, that is! For those that are buying physical to have in your possession, take advantage of these prices and who knows we may get even lower prices. For those who have no GOLD & SILVER, you are getting a chance to participate in something that could be very rewarding in the next few years.

Enjoy the rest of your weekend and I will leave you with this quote because this is so true especially in the instance of me bringing you this blog. I know that the current prices we are seeing with the US stock markets and precious metals, especially GOLD are an ILLUSION to make you believe things are much better than what they truly are. In time this game will end and my oh my, I could only imagine what everything will look like when it does.

Thank You,
Martin