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

Gold Seeker Closing Report: Gold Erases Early Losses to End Unchanged
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 7 18 2018
By: Ira Epstein

Housing Market Collapse 2.0 Has Begun
By: David Haggith

Will the Fed’s Tightening Trigger Another Crisis?
By: Arkadiusz Sieron

Merk Research - U.S. Equity Markets
By: Axel Merk

No currency manipulation by China’s government, yet
By: Steven Saville

India Soaks Up Physical Silver Supply
By: Craig Hemke

50 Reasons Why This Bull Market Has Longer To Run
By: Avi Gilburt

Gold Resource Corporation Expands Arista Mine With Drill Intercepts Including 23.39 Meters of 2.00 g/t Gold, 200 g/t Silver and 2.08 Meters of 1.98 g/t Gold, 1,583 g/t Silver in New Vein Discovery
By: Gold Resource Corporation

“Biggest Bubble in the History of Mankind” Is “Going To Burst” – Ron Paul
By: GoldCore

 
Search

GoldSeek Web

 
We Are US Dollar Bulls


 -- Published: Monday, 28 July 2014 | Print  | Disqus 

By Victor Adair

Currencies:

The US Dollar Index was very strong in July…closing last week at its best levels since February…very close to a major chart breakout. The Euro closed at an 8 month low…we expect it to take out last year’s low (128) before the end of this year. CAD hit a 5 year low (8850) in mid-March…rallied to 9400 by early July but has since traded back below 9250. The 3 month CAD rally was fuelled by short covering…speculators actually became net long in July…we expect to see them reverse their positions again…we see 9400 as a roof and look for CAD to make new lows this year.

CA6-July28

We think AUD and NZD are far too high and could easily slip 5 – 10% before the end of the year. Any news of China slowing would accelerate the move.

For our short term trading accounts we remain long the US Dollar Index, short CAD and AUD. We are staunchly bullish the US Dollar and we are looking for other opportunities to profit from that view. Longer term: We think the US Dollar will have a major multi-year rally against most currencies as global capital flows to the relative safety and opportunities in America.

DXE-July28

Credit markets:

We are seeing growing evidence that the fabulous 5 year rally in junk and high yield bonds is over…we expect a possible rout in this market as so much money (and leverage)has been drawn here over the past several years as “everybody reached for yield.”

Stock markets:

It’s been an amazing bull market…33 months without so much as a 10% correction…people have been rewarded for buying dips…geo-political crisis don’t seem to matter…the obvious sentiment is, “Where else can you put your money?”

For our short term trading accounts we sold the S+P 500 short last week…let’s call it trader’s “gut feel” that this market is ripe for at least a modest correction…but we’ve got very tight stops…we respect the momentum of this rally…but…we sold it short.

EP-July28

Risk On / Risk Off:

We’ve been expecting the runaway “Risk On” Market Psychology to end…either from a geo-political shock and/or from a realization that the Fed will be raising rates faster and sooner than the market wants to believe. We expect this “switch” to “Risk Off” to manifest in:

1) A US Dollar rally as capital “comes back to the center,”
2) Credit spreads to widen as people “bail out” of weaker credits, and
3) A correction in the stock market.

We think the smart money is getting defensive…witness the US Dollar rally and the widening credit spreads…we expect a break in the stock market.

http://moneytalks.net/


| Digg This Article
 -- Published: Monday, 28 July 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



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 - 2018



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

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com 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, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.