New Project

A New Currency King Emerges (Plus Bad News for Precious Metals Bulls)

Following a surge to a multi-year high last week, the US Dollar Index (USDI) reversed course at a critical inflection point on the historic 42-year charts. That inflection point is apparent on the long-term chart we see below with its successively lower highs. USDI is now at a significant resistance…
New Project (2)

A Tale of Two Dollars … And Precious Metals Too

Last week the US Dollar Index (USDI) surged to its highest level since May 2017 as greenback strength dominated currency price action.  So it seems the U.S. dollar is set to continue its advance against all other major currencies except one. It’s easy to make a bullish case for the…
New Project (1)

What’s Looking Good in This Weird “New Normal”

Before I get into the charts this week, there are three major events that have occurred in the financial markets that could have enormous implications for investors, savers, life insurance buyers, and pretty much everybody going forward. Not necessarily in order of importance: However, that optimism has been short-lived. In…
New Project

Spinning in Place: The FX (and Metals) August Conundrum

As I expressed last week, past experience has made me extremely wary of trading trend continuation moves in August. Seasonality during this period means low volume and consequently either low volatility (prices go nowhere) or high volatility (price moves prove to be nothing more than random market action). The frenetic…
Building Construction

Which Positions to Build During the Dog Days of August

Past experience has made me extremely wary of trading trend continuation moves in August. That’s because due to the holidays, liquidity dries up and we tend to get very range-bound trading activity. Prices chop and flop around and basically do nothing but slide sideways until the autumn. August is definitely…
Bull Run

The U.S. Dollar Bull Run Is Gathering Steam: What’s Next?

Last week, on the heels of better than expected U.S. economic growth figures, the US Dollar Index (USDI) finally pierced above a multi-year resistance level. That’s important because we’ve been flirting with this upper resistance level for some time. The market has churned sideways for literally months. And each time USDI…
New Project (13)

Changing of the Guards? What To Trade Now

Four key events happened last week which may signal major changes in the trends of various asset classes. Last week we saw the dollar hit a snag at a long-term resistance level … the yen rise … gold soar to six-year highs … and the U.S. stock market reverse markedly…
Americans Protesting

Gold’s on the Way Up as the Dollar Hits Major Resistance

Is it significant or not? Once again, the US Dollar Index (USDI) failed to penetrate above a multi-year resistance level last week. Considering the 42-year length of the USDI (U.S. Dollar Index) chart shown above, it could prove to be a major inflection point. Especially when you take into account…

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