trevor - Gold tagged the 65 week
MA, it ether bottoms around here, or it goes well below the 65 week
MA and begins a small bear market. So this area is either defended
or it's not. I suppose that this is a good place to take a
shot from a risk/reward standpoint i.e. buying as close to support
as possible.
Matt UNG has literally
fallen off the table along with gold. Please keep an eye on
it for us....there should be a great opportunity to play a bounce
on natural gas.
No pos divergence yet on macd daily yet, but histogram has
some. Thanks
What's happening in dollars is partly that the Treasury is
auctioning off huge quantities of CMBs (= Cash Management Bills, or
'we're out of cash bills'). These are short term instruments with a
high yield that are attractive to foreign central banks. But to buy
them the FCBs have to convert their own currencies into dollars,
which causes upward pressure.
The current market is being driven by massive, contradictory
forces. Deflation fears are sending commodity, oil and gold prices
down, which are driving the markets up. The US govt issuing CMBs is
a big warning sign about the US govt's finances. At some point FCBs
will stop buying them, at which point the Fed has to step in and
buy them instead, which is a pure dollar printing press move, and
highly inflationary.
From a technical point of view I think what this means is that
we are likely to see more and more volatility, with extreme price
movements becoming a norm. To be honest, it's not a market I feel
comfortable trading in any more. If the deflationary pressures are
real, cash may turn out to be the best place to be (and short
commodities and shiny stuff).
gold
Posted by trevor on 11th of Aug 2008 at 12:44 pm
any thoughs on a bottom coming in gold
trevor - Gold tagged the
Posted by matt on 11th of Aug 2008 at 12:52 pm
trevor - Gold tagged the 65 week MA, it ether bottoms around here, or it goes well below the 65 week MA and begins a small bear market. So this area is either defended or it's not. I suppose that this is a good place to take a shot from a risk/reward standpoint i.e. buying as close to support as possible.
the only think I don't
Posted by matt on 11th of Aug 2008 at 12:55 pm
the only think I don't like is that the weekly stochastics are not oversold yet and gold stocks generally bottom before the metal.
Interesting day, we'll see....
UNG
Posted by lpant on 11th of Aug 2008 at 01:05 pm
Matt UNG has literally fallen off the table along with gold. Please keep an eye on it for us....there should be a great opportunity to play a bounce on natural gas.
No pos divergence yet on macd daily yet, but histogram has some. Thanks
I really feel like the
Posted by dylan398 on 11th of Aug 2008 at 12:55 pm
I really feel like the dollar has been "artificially" supported here...conveinient timing considering the no shorting rule in financials....
What's happening in dollars is
Posted by unsane on 11th of Aug 2008 at 01:06 pm
What's happening in dollars is partly that the Treasury is auctioning off huge quantities of CMBs (= Cash Management Bills, or 'we're out of cash bills'). These are short term instruments with a high yield that are attractive to foreign central banks. But to buy them the FCBs have to convert their own currencies into dollars, which causes upward pressure.
The current market is being driven by massive, contradictory forces. Deflation fears are sending commodity, oil and gold prices down, which are driving the markets up. The US govt issuing CMBs is a big warning sign about the US govt's finances. At some point FCBs will stop buying them, at which point the Fed has to step in and buy them instead, which is a pure dollar printing press move, and highly inflationary.
From a technical point of view I think what this means is that we are likely to see more and more volatility, with extreme price movements becoming a norm. To be honest, it's not a market I feel comfortable trading in any more. If the deflationary pressures are real, cash may turn out to be the best place to be (and short commodities and shiny stuff).
its funny you mentioned that...I
Posted by dylan398 on 11th of Aug 2008 at 01:12 pm
its funny you mentioned that...I was just about to blog, that it looked like the market was possibly pricing in deflation...