The Euro, Canadian dollar, Japanese Yen, Swiss franc all traded up to the top of their ranges for what seems like a setup for a breakout.
The British Pound actual broke upward with force. The Canadian dollar closed slightly above the last ten months high. Even oil, came within a hair of a negating its 1.5 month correction.
With all currencies even the Yen moving opposite the dollar on Friday and the Pound breaking out and Canadian dollar at a 10 month high, it seems the USDollar will be under tremendous pressure Monday.
If that succeeds, gold and silver will be moving up pretty quickly. there may be some good money to make here.
Precariously standing at the precipice.
There was no guts to the positive candle on the chart yesterday, then to have a similar magnitude candle in the opposite direction today, wow!
Usually there are massive buy stops at these levels which trigger large momentum changes. I expected buy stops to push the dollar index back up which would in turn trigger more buy stops at higher levels to at least 78.5. Sellers would then sell into the rally. It didn't happened. There are a lot of sellers stuck at 78.5 on the index.
It looks like the dollar index is getting ready to test that support of 77.5 I think the test will be tomorrow. Those sellers at 78.5 who haven't been able to get out will rush in mass to cause a stampede down, to what level is anyones guess.
WOW, what a difference a few days make.
On July 29, it looked like the dollar was coming up to cross its 50 moving average again.
Then, splat, a pratfall. It is so far below the 50 day MA now and headed so strongly down in a vertical direction, that it looks very much like it will eventually plateau at a much lower level.
For my part, although I am still gunshy about everything and am staying completely liquid, my single exception is direct metal purchases. If you find a good price for junk silver coins, a very low markup over spot price, go for it. You will be ensuring that you actually can guarantee benefit from the eventual high prices that we know are coming, and you will be doing your part to stoke the demand for the actual product.
Given what has lately been publicized about SLV, and given the lack of transparency with SLW, and given the perpetual shakiness of the very small miners, I think the metal itself is the safest bet right now.
honestly, i think there's some truth in that. but i think that SLW's multiple is SO low compared to future production and how high most of us think the price will go that it's kinda a moot point.
always good to diversify on that front.
Goldseek has a pretty good live dollar chart:
It went to 7.44 and had a order waiting there for it that took it back above 7.5. I think another attempt will happen within 2 hours. Going to enjoy some sun now.
It feels good, but the dollar index has held at almost exactly 77.5 for the last two hours.
It seems there are good bids at this mark but the day isn't over. We watch and wait.
If the index gets through, we're looking at $15 silver and $980 gold.
Sure looks like a solid breakout on the pound, loonie, aussie and euro. Makes me think 77.5 is gonna happen and the metals will fly. We'll see, gonna skip my bike ride today to watch the fireworks.
The dollar index is knocking on 77.56 right now.
If it get's through 77.5 with conviction $960 gold will fall very easily and $14.50 silver willed be sliced through like butter.
Silver is behaving much stronger than gold right now, which is a good indication that this really has legs to it. Funds jump into silver if they have conviction that a move in PM's is really happening because of the 2.3:1 returns silver provides over gold.
We cross our fingers and wait. The thing that sucks is that its a holiday in canada right now, so no trading up here.
At 9:00pm sunday night the dollar index came within a whisker of 78.
It seems the Dec 2008 previous low of 77.5 is the point we have to watch to see if the dollar attacks that mark.
The candle put in on the dollar chart friday was scary looking if you are dollar holder.