A solid jobs report, and an unemployment rate of 4.3%, is giving the markets some much-needed direction (how about that……..95.7% are working! Although some might say it’s more like 63%…….but I digress). This is strengthening the dollar, as I’ve been hoping it would…..and like I wrote about two days ago.
Every since 2017 began,the US dollar has had the stuffing knocked out of it. I wanted to point out that the dollar, as viewed through symbol UUP, is getting very close to the lowest levels of the past two and a half years. If this double bottom holds, we could get a nice bounce (which would drive down the price of gold in a big hurry). I’m playing this by way of an FXE short (that is, the Euro), which I entered about an hour ago.
It has been a contrarian trade that has not yet worked out; by that I mean my short position on the Euro and preparation for a firming US dollar. Yesterday the market cheered the supposedly dovish Fed, and USD got smeared again as the world’s counter party paper boosted assets far and wide… on nothing but perceptions and a hell of a lot of momentum and gaming on FOMC day.
USD opened weak again today but so far at least, is sporting a Hammer which, if it stays in play, would be a bullish reversal candle.
With both Japan and Europe out of the way, the FOREX markets have moving fractionally to offer the US dollar a little strength. Of most interest to me is the Yen, which itself is off by about a quarter of a percent, which is letting gold slip away from all that overhead supply it has.
Gold has been bouncing higher for a little more than a week, and my view is that, as it approaches its gap at $117.95, it will reverse lower. Whether it’ll reach the gap or not at all remains to be seen, but I’ve shorted it this morning with a stop at $118.
This caught my eye this evening…………
I was curious what the Commodity King had to say, since he’s been bad-mouthing bitcoin a lot lately, so I did a Google search. It didn’t take me but a moment to find his take on it from January 2014. We can see, thanks to SlopeCharts, how it’s done since then.