FX Drives Everything
Want to use this post to reiterate the following: Over-weight sectors/industries that under-performed over the past decade Under-weight sectors/industries/that out-performed over the past decade The latter is most applicable to those sectors/industries heavily impacted, one way or the other, by…...
What’s Green Today (Nat Gas a Safe Haven)?
Safe havens – gold, USD, Yen and U.S. bonds. Strangely enough though, so is Nat Gas. In fact, it’s the greenest thing on the screen. Coincidence when we find that in Cyrpus the government has promised to repay savers enduring…
Russell 2000 Faces Resistance on a Relative Basis & Could Under-Perform for Years
Dating back to June of this year we have been suggesting that the potential for a longer-term reversal in the USD could lead to small-caps sustainably under-performing the broader market. We continue to believe this today. Even if the USD…
More on the USD and Related Assets
Anybody find it ironic that the USD suggests the following… While the silver analog suggests this…? and the AMEX Gold Bugs Index is doing this…?...
USD Bottoming & Consolidation Process Complete?
Here is the last post we had on this topic. We update to include price action through this morning (USD @ ~80.43). Per the chart below, the USD sits atop line (1) support which has been in place since April…...
While the USD Could Face Additional Near-Term Downside, the Potential for a Large Rally May be Growing
Broadly speaking, we’ve been bearish and/or neutral on the USD for the past few months. That said, we’ve also tried to stress the idea that it was likely in the process of putting a durable, long-term bottom in and that…
Ratio of Gold vs. Silver Sitting on Support that Has Tended to Coincide with Silver Tops Historically
The two technical set-ups in this post could make for some firecrackers, er, fireworks, in the metals space in the near-term. In the chart below the ratio of gold vs. silver has fallen to the combo of support lines (1)…...
Gold & Silver Approaching Resistance as USD Nears Support
In the chart below we plot Gold, Silver and the USD on a weekly basis. Gold and silver are both approaching stiff resistance dating back to their 2011 highs. At the same time, both are nearing the completion of descending…
USD Finally Going to Find Support & Bounce, Hurt Precious Metals in the Process?
We’ve been broadly bearish on the USD since May. We’ve outlined the justification for that stance in various posts in the recnent past here and here. In a nutshell, from a statistical standpoint, history told us that the USD’s recent…