LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

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

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

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
The Currency Markets Are Flashing Red Alert


 -- Published: Tuesday, 6 January 2015 | Print  | Disqus 

By Graham Summers

 

We’ve been warning that stocks were susceptible to a sharp drop for several weeks now. Stocks are notoriously “dumb” when it comes to major market moves.

 

Consider that stocks, even at current lofty levels, have a global market capitalization of slightly over $60 trillion.

 

In contrast, the global bond market is well over $100 trillion.

 

And the global currency market trades OVER $5.3 trillion per day.

 

As a result, stocks ALWAYS “get it” last.

 

With that in mind, the S&P 500 was rejected at the upper trendline of a megaphone pattern. 

 

 

This move is predicated on the US Dollar rally.

 

 

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 completed and we’re due for the next leg up here. Check out the absolute bloodbath for the US Dollar/ Brazilian Real pair (when the Dollar strengthens against the Real, the chart moves up).

 

 

We’ve just completed a consolidation phase. The next move should be an absolute doozy.

 

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

 

 

That’s a 17% 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.

 

As we keep emphasizing, stocks are ALWAYS the last to “GET IT.”

 

The currency markets (which trade $5 trillion per day) realizes that something MASSIVE is underway. And it’s only just beginning. Globally the US Dollar carry trade is over $9 trillion in size. As the US Dollar rally increases, this whole mess could implode.

 

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: Tuesday, 6 January 2015 | 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 - 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.