The ‘all one market’ vs. the US dollar scenario is breaking up a bit. Commodities and the Euro are doing well. Gold is hanging around and the US stock market? Not liking the weak dollar so much. The precious metals want to see silver get off the floor, but it’s got a heavy open interest sitting on it. This is a tough market, folks.
Guest Analysis by Bob Hoye
One is dropping below its MA 50′s and the other is popping above, after the ECB sat on its hands with rates but made a lot of Jawboning about ‘unconventional’ stimulus in the battle against the dreaded deflation.
It is unbelievable the degree to which people still have confidence in these clowns (including the ones packed into the little clown car here in the US), but apparently they do.
It remains all one market vs. the US dollar, AKA the anti-market. SPY has actually remained somewhat on its own course over the last week, but the others are strictly in anti-USD mode right on down to the little hook upward this morning as Uncle Buck hooks down. Silver, which I got longer on yesterday, is the most sensitive.
By Tom McClellan
Chart In Focus
Bond Yields Say More Downside For Dollar
November 15, 2013
The Chicago PMI blew everyone’s sox (<—typo not intended, but I’ll leave it, considering… ) off and tomorrow we have the national ISM, which has been very strong the last couple of releases. Typically, this strength got the ‘taper’ blow horns going again today.
Contrary to this hair brained declaration by a talking head on CNBC (“I like the dollar; it’s going to kill gold for sure and I think it’s great for American corporations”) the US dollar has dropped and American corporations like it just fine. That is because American corporations like inflation against a
defl err disinflationary backdrop just fine.
#261 was just mailed to subscribers. It took 10 less pages (than last week’s extended exercise) to make some clear points, especially about what NFTRH is and is not bullish on in the intermediate to long term. This is in contrast to some curious conclusions I have seen drawn on the internet about last week’s publicly available excerpt that discussed gold and the stock market.
NFTRH 261 – focused viewpoint and all – out now.