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 Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Gold's Interesting Day
By: Rick Ackerman

Asian Metals Market Update: November-20-2017
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Williams and Louis Navellier, and your host Chris Waltzek
By: radio.GoldSeek.com

Gold Market Update
By: Clive Maund

Technical Scoop - Weekend Update Nov 19
By: David Chapman

Zero Hedge invites Financial Times to heed GATA's urging on gold suppression
By: Chris Powell

The Great Retirement Con
By: Adam Taggart

Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom
By: Gary Tanashian

Global Silver Investment Demand Maybe Down, But Still Double Pre-2008 Market Crash Level
By: Steve St. Angelo

 
Search

GoldSeek Web

 
The Stuff Is Already Hitting the Fan in the Currency Markets


 -- Published: Thursday, 18 December 2014 | Print  | Disqus 

By Graham Summers

 

Stocks are rallying hard for three main reasons:

 

1)    Janet Yellen’s press conference managed to confuse everyone into thinking that the Fed might prop stocks up longer.

2)    The Swiss National Bank cut interest rates to negative in an effort to depreciate the Franc.

3)    It’s options expiration week… and Wall Street likes to push the markets higher to insure as many puts as possible expire worthless.

 

Let’s take a look…

 

Stocks rarely if ever go straight in one direction. The markets have been setting up a megaphone pattern since July. We staged a false breakout to the upside in late November. That has now reversed and we’ve broken critical support:

 

 

We are now rallying to test the upper trendline line to see if this has become resistance. I expect it will. So stocks might go up to 2050 on the S&P 500 (initial target the green circle), but then the REAL move down should come climaxing in a break to the red circle in the lower 1800s.

 

The one item that could throw a wrench into all of this is the US Dollar. The Dollar continues to strengthen which is a VERY dangerous development for the financial markets.

 

Globally there are at least $9 TRILLION US Dollar shorts in the form of carry trades. When a carry trade unwinds, the damage is often catastrophic.

 

The first stage has already hit. Check out the absolute bloodbath for the US Dollar/ Brazilian Real pair (when the Dollar strengthens against the Real, the chart moves up).

 

 

We’re talking about a 20% collapse of the Real against the Dollar in the span of LESS THAN SIX MONTHS.

 

Here’s the US Dollar/ Australian Dollar pair (again, when the Dollar strengthens against the Aussie Dollar, the chart moves up).

 

 

That’s a 16% move in less than SIX months.

 

You only get these kinds of moves when the STUFF IS HITTING THE FAN. By way of example, imagine the impact these moves would have on ANY project or investment that was borrowing US Dollars in Australia or Brazil.

 

The financial media is euphoric because stocks are rallying. But stocks are ALWAYS the last to “GET IT.” The currency markets (which trade $5 trillion per day) realize that something MASSIVE is underway. And it’s only just beginning.

 

We fully expect that 2015 will be the year when the second round of the Great Crisis really hits. And when it does, entire countries will go bust.

 

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwo.html

 

Best Regards

Phoenix Capital Research

 


| Digg This Article
 -- Published: Thursday, 18 December 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 - 2017



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.