HEADS UP here ! The Dollar is looking extremely BULLISH ! If so, HUGE ramifications for gold followers AND oil speculators. Read on !
Written: Thursday, Nov 12, 2009 (U.S. 6am EST)
IN MY OPINION:
Commodities, like the Dollar and Gold, have no “fundamental” issues to contend with, like stocks. You can analyze and track stocks using earnings, growth, debt, sales, and a myriad of other business data.
There is no such animal with the Dollar and Gold. They are run basically by speculators. Some unlearned “scholars”, i.e. conservative talk show hosts, try to correlate the Dollar to the national debt. That’s simply not true, as any chart comparing the two will show.
SPECULATORS control the Dollar and Gold.
And, right now, the chart for the Dollar is lining up in a very positive BULLISH pattern. The next move could be a strong advance, catching even the most sophisticated speculator by surprise.
In addition, IFFFFFFFF the Dollar does rise, it will cause a big hole in the Gold and Oil markets – as they fall when speculators dump out. The Oil market has been sputtering for almost 2 weeks now, in anticipation of a rising dollar. That’s because there is much more money at stake in the Oil market than in the Gold market.
The Gold market is a “smoke and mirrors” market for small investors who are worried about the U.S. economy – as if buying gold would help the situation. Where are these “investors” going to spend their profits, if not the United States? Speculation in gold, in my opinion, NEVER makes sense – for anybody but sponsors of radio talk shows.
The stock market is already churning with a downward internal bias. Remember, the Dow Jones Industrial Average is a bogus indicator in value. In reality, a 250-point advance on the Dow is equivalent to a $20 stock advancing ONLY 75 cents. (Check the actual price of Microsoft and Disney to see what I mean.) That’s not a HUGE RALLY, as most financial reporters and TV gurus state.
A runaway Dollar will be a psychological boost to those already in the stock market – and being contrary, will give them good cause to sell out and take their profits.
When CONSENSUS moves in a SINGLE direction, you could be 100% right !
If you don’t believe that, you could be 100% wrong. Goto the website and sign up today at http://www.fburg-online.com
Stay Tuned !
Jack
P.S. By the way, (in my opinion), watch the Dollar for the next couple of days. Once it breaks its resistance – and moves above its moving average, there will be no further doubt about the Dollar’s recovery and forward advance. (Always check the DISCLAIMER.)
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