Tuesday, June 14, 2011
That Pesky Uncle Buck
The predicted short-term bounce in the U.S. Dollar last week threw the precious metals complex and general U.S. equities for a loop. Is it over? If it's not, does it mean more pain for the anti-dollar bets that make the casino party so lively? Here's a one month chart of the UUP ETF (a US Dollar proxy) to allow me to plot intraday action using 60 minute candles:
Another leg up in the U.S. Dollar over the next week or so should hopefully correspond with a summer low in "risk" assets. All currencies are sinking versus Gold, but markets don't move in straight lines. In the meantime, however, shorter term pain in the Gold and silver price is likely. My subscribers and I are honing in on the Gold stock sector and getting ready for the next bull trade. Join us if you're interested!