Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Federal Reserve Confesses Sole Responsibility for All Recessions
By: David Haggith

Beware! These Guys Are Good...
By: Rick Ackerman

Asian Metals Market Update: Jan 17 2019
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Rise with Stocks
By: Chris Mullen, Gold Seeker Report

Precious metals marketplace OneGold extends a rare offer of Gold and Silver at spot price
By: OneGold

Ira Epstein's Metals Video 1 16 2019
By: Ira Epstein

Goldcorp-Newmont deal points to more M and A
By: Richard (Rick) Mills

Silver – 1993 and 2001 Repeat
By: Gary Christenson

The Newmont-Goldcorp Deal Is Positive News for Gold Mining
By: Frank Holmes

Northern Vertex Mining Presents a Video of the Moss Gold Mine, NW Arizona, USA
By: Northern Vertex Mining Corp.

 
Search

GoldSeek Web

 
Reminder that THE DOLLAR HAS BROKEN DOWN FROM A GIANT TOP and is at A GOOD POINT TO SHORT IT...

By: Clive Maund

 -- Published: Monday, 12 February 2018 | Print  | Disqus 

The purpose of this update is to try to make sure that you remain aware that the dollar has broken down from a giant top area, and is probably headed much lower, a prospect which is not diminished by the modest countertrend rally of the past week or so. We can see this top area and the breakdown last month to advantage on the latest 4-year chart for the dollar index below. With respect to the dollar, Peter Schiff’s latest comments on it in Raising Rates Reflect Bigger Debt Not Faster Growth are well worth reading. Basically these people expect to “have their cake and eat it” and have gotten away with this up to now – rising bondmarket, rising stockmarket, rates low and stable, thanks to allowing uncontrolled expansion of debt and derivatives, but basically they are out of time, which is what the drop in bondmarkets and consequent plunge in the stockmarket is signaling.

The dollar’s modest post breakdown rally to the underside of its Broadening Top is a typical post breakdown occurrence, and only increases downside risk by unwinding the earlier oversold condition. With its moving averages in severely bearish alignment it looks set to drop away very soon, and the decline could become precipitous. The reason for this is that a continuation of the current course, where the Fed engages in QT (Quantitative Tightening) and also raises interest rates will quickly implode the debt-wracked economy, so they are likely to abandon the proposed rates rises, unless their intention is actually to crash the markets in order that the Deep State can pin the blame on Trump. Once they abandon the rate rises, the dollar is toast.

On the 6-month chart for the dollar index we see how the dollar rally of the past week or so has unwound the earlier oversold condition and brought it up to the resistance at two trendlines, one being the upper boundary of its recent steep downtrend, and the other being the lower boundary of the Broadening Top shown on the 4-year chart. This is a very good point for it to turn lower again.

To conclude, this looks like an excellent point to short the dollar, which is expected to drop and probably accelerate away to the downside. This should provide a boost for the Precious Metals sector which should not be troubled by a falling stockmarket over the short to medium-term, and even when the stockmarket does fall again, it should have less or no impact on the Precious Metals sector, which will increasingly be seen as a safe haven.

End of update.


Posted at 1.15 pm EST on 11th February 18.

 


| Digg This Article
 -- Published: Monday, 12 February 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus

Web-Site: CliveMaund.com



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.