This set’s up time and time again when you’ve got the timing right. Gold is going to complete its correction here very shortly, and there are several “juicy trades” on deck. Every “wanna be stock guy” on the planet has this chart / set up on his screen.
Something interesting though…
The U.S Dollar “has bounced” against a large number of currencies but “vewy very quietwy” as The Euro has bounced EVEN more! This is not something you see very often and ( in my view ) is suggestive of some very VERY SERIOUS currency repositioning.
This is setting up for “crash like / waterfall action” in USD – and I would expect U.S Equities to follow.
I “could enter as early as Friday as this is a slam dunk. Risk gonna come off HARD next week.
Here is what you do:
Wait until you see gold bottom / dollar top. You need to “get ready and wait” as this one’s gonna help you pay for that big vacation you’ve been planning.
The FOMC meeting is early next week so I would not be surprised if we just bounce around ’til then. Get ready and wait…I’ll post specifics over coming days but this is the plan. This is gonna be a doozy!
I’ve sat out a few days and missed some pretty decent action in USD – as the slide continues.
This will continue for much longer, so I’m going to take a day er two here to let it breathe – then jump back in on the short side. The U.S Dollar is attempting to find a bottom, not only in an immediate sense ( having absolutely no luck ) but more so in an “intermediate / medium term” sense. Let me explain…
When you see a continued pattern of “lower lows and lower highs” on a daily chart / time frame you’ve got to understand….this is no small time trend. We are talking about weeks and week of a given asset falling lower, then lower than the previous low, then lower than “that” low until finally a much larger “intermediate cycle” completes. You dig?
The U.S Dollar will bounce here and likely bring in a large number of traders assuming this is a bottom. This IS NOT even close. Look for a decent bounce here on the 1H as a great place to re enter short.
That’s all I’ve got for today folks as I am busy busy with “yet another venture” so…watch for the bounce here in “risk in general” and get your levels checked/locked and loaded on all correlating pairs – set for another round of “short use trades”.
Bang on the money.
I bought JNUG at 6.80 yesterday afternoon, as well shorted USD/JPY and AUD/JPY. I took long positions in both EUR/USD and GBP/USD first thing this morning.
How can anyone imagine the meeting of Trump and Chinas President Xi being anything less than a total disaster?
April 11th I “believe” to be a full moon ( what you didn’t check your lunar cycles either? ) – I am very comfortable with these positions through the weekend and beyond.
It’s celebration time here so…..have a good one y’all.
By Megan Davies and Rodrigo Campos
NEW YORK (Reuters) – The Trump Trade could start looking more like a Trump Tantrum if the new U.S. administration’s healthcare bill stalls in Congress, prompting worries on Wall Street about tax cuts and other measures aimed at promoting economic growth.
Investors are dialing back hopes that U.S. President Donald Trump will swiftly enact his agenda, with a Thursday vote on a healthcare bill a litmus test which could give stock investors another reason to sell.
“If the vote doesn’t pass, or is postponed, it will cast a lot of doubt on the Trump trades,” said the influential bond investor Jeffrey Gundlach, chief executive at DoubleLine Capital.
U.S. stocks rallied after the November presidential election, with the posting a string of record highs up to earlier this month, on bets that the pro-growth Trump agenda would be quickly pushed by a Republican Party with majorities in both chambers of Congress.
Investors extrapolated that a stalling bill could mean uphill battles for other Trump proposals. Trump and Republican congressional leaders appeared to be losing the battle to get enough support to pass it.
Any hint of further trouble for Trump’s agenda, especially his proposed tax cut, could precipitate a stock market correction, said Byron Wien, veteran investor and vice chairman of Blackstone (NYSE:) Advisory Partners.
I expect markets to continue lower well into next week, as those who’ve not yet sold “freak out” at the last minute…then sell into the waterfall. Sound familiar? Stocks will bounce sure…so if you are holding now…you likely lose a few nights sleep but “its too late to sell now”.
How many days / weeks ago did I suggest to “raise cash” and look for another great entry opportunity?
Read the rest here.
Unfortunately….for those of you who’s investment and trading decisions depend solely on the grunt’s and groans of some smart mouthed Silverback with an attitude – I am busy today.
An esteemed colleague and I have been summoned to the head offices of Google San Fran – where we will be building time machines, slipping microchips under our skin, and dancing through holographic simulations of the future. Jealousy will get you everywhere. I’ll post some pics later this week.
The Euro has continued higher – as expected. The U.S Dollar has taken its beating over the past few days and ( in my view ) will continue to get hammered – as expected. And good ol’ gold has now put in its daily cycle low somewhere here around 1200.00 per ounce.
The current trade hypothesis still resting on the fact that “whatever happens” on Wednesday with respect to both interest rates rising and the U.S debt ceiling being reached “again”…The U.S Dollar sees its day, and continues South.
This “could” stretch another month if indeed the powers that be somehow appease markets – by what? Raising both interest rates AND raise the debt ceiling? This I truly have to see with my own eyes to truly get the full sense of just how “totally F’d” this system is.
I don’t particularly enjoy trading ahead of macro news events, but in the case will take it on the chin one way or another.
Good luck to all over the next 48 hours…you’ll likely need it.
Best advice…..don’t move a muscle til ‘after the announcements on Wednesday….and even then – don’t get “trigger happy” Thursday morning either.
The near term strength in The U.S Dollar ( although still no higher than 5 days ago…. ) is a ramp into the proposed rate hike and a clear “sell on the news” trade. It’s so obvious. Staring you right in the face as Gold’s near term slide looks to FINALLY end – in the congestion zone around 1200.00
Looks pretty clear to me, as per the previous post and information provided by James Rickards. A “nominal rate hike” with stocks at all time highs ( when else could these bozos possibly even consider it ) and perhaps a short-term “extension” of this ridiculous euphoria….then reality, as both stocks and The U.S Dollar hit the skids.
- USD/JPY should hit resistance around 114.85-114.95 and that will be that.
- EUR/USD is perfectly fine here around 1.0525-1.055 ( as it’s STILL above 1.05 despite USD bounce )
- AUD/JPY ( our “risk barometer” ) hasn’t even budged. No breakout. No nothin so…..
Don’t get too excited. Nothing has changed except of course – further bad news on trade deficit with China and of course…..Trump instability / Tweetfest and generally nuttiness – still on the rise.
These things take time so…let’s just take a minute and re group.
The entire blog / financial community at large is pretty much sitting at a stand still, with a couple of “ridiculous” factors and circumstances in play. Get a load of this….March 15th is not only the DAY the debt ceiling “freeze” does exactly that – but ALSO the day the Fed is widely expected to raise interest rates?? Can you wrap your head around that? Can you?
The dichotomy here is unprecedented. I see the debt ceiling biz being completely and totally “blacked out” in the main stream media, as it could very likely lead to government shutdown, as well as some pretty “snappy headlines out there” when the world at large is again reminded….The United States is again 100% flat broke.
I would assume “the powers that be” will keep things lofty moving into the 15th, then regardless of an interest rate hike or not….you’d have to expect our “long-awaited sell off / correction” to start, which will likely take us well past May ( as I also feel that SELL IN MAY will be in effect this year ).
In a broad sense I’d be looking to put some protection in place…start raising cash for a much better time and place to “jump back in”.
There is very likely one more push higher later this year ( and it could very well be a whopper ) so maybe July/Aug would be a great time to grab that cash…..and put it back to use moving into the fall.
EUR longs looking good. NUGT pissing me off.
Anyone else find this absolutely amazing / hard to even comprehend?
From some article:
“” The Digital currency bitcoin jumped to a record high above $1,200 last Friday, as investors speculated the first bitcoin exchange-traded fund (ETF) to be issued in the United States is set to receive regulatory approval.
Traditional financial players have largely shunned the web-based “crytpocurrency,” viewing it as too volatile, complicated and risky, and doubting its inherent value.
But bitcoin, invented in 2008, performed better than any other currency in every year since 2010 apart from 2014, when it was the worst-performing currency, and has added almost a quarter to its value so far this year. “”
Bitcoin Now As Valuable As Gold
Another indication of just how stretched / ridiculous things have gotten when a digital crypto-currencies “perceived value” has matched / surpassed the price of gold.
You don’t think this thing is just a tad over extended?
So it all comes down to Trump’s speech tonight….as market participant stand like fat deer in the headlights..
Gold still the same. EUR/USD up nicely but still more or less the same, and the beast of all beasts NUGT takes the world for a diving lesson. Boom…talk about a stop run. These things don’t happen unless the big boys are making their moves. They can push price a couple bucks in a couple of hours without batting an eye….all the while your piddly 200 shares with a .50 cent stop get’s gobbled up. Multiply that by a couple 100,000 ( or million ) and you start to better understand just how difficult it is to “trade” with a “pea shooter”…when those on the other side of your trade carry billion dollar bazookas.
You really don’t have much of a chance.
I find it incredibly ironic that the Trumpster is calling for some 54 billion more spending on Defence, and 1 Trillion on infrastructure when the country is already 100% flat busted / broke / bankrupt. As suggested by a few of the brightest minds in the comment section here at Kong – sounds like the ol debt ceiling with just get raised, then raised again…then again. Where does the money come from?
Sounds like more money printing to me..but I thought the economy is expanding and there is now talk of the rate hike cycle beginning? Not.
QE will happen in ‘Merica again.
The printing presses can never stop printing.
I used to go on and on about it, but with The Fed printing confetti each and everyday for the past 8 years – it didn’t really matter. The United States is 100% totally broke / Greece style / Flat out busted.
You guys remember that thing called “the debt ceiling”? Well……March 15th – Here we go again…only this time it’s different.
March 15th is the day that the “debt ceiling holiday” that Obama and Boehner put together right before the last election in October of 2015 expires.
The debt ceiling will freeze in at $20 trillion. It will then be law. It will be a hard stop. The Treasury will have roughly $200 billion in cash. The U.S is burning cash at a $75 billion a month rate.
By summer, they will be out of cash. Totally out of cash.
The holiday is over.
You think I’m joking about this….you don’t take this seriously, and you bury your head in the sand – I won’t be very happy.
Gold up = Fear = USD and U.S Stocks down HARD.