Welcome To Weimar
There doesn’t seem to be any bottom for the Dollar right now. Suffice it to say that I am not amused and the way this is going I’ll have to raise my Gold subscriptions from $49 to $49,000 by the end of the summer. Better lock in that low rate before we hit hyperinflation and wind up shopping with wheelbarrows full of credit cards! Anyway, if you’re elated about your long positions in pretty much anything but Dollar denominated FX pairs right now then think again, because all you’re really doing is to offset what you are rapidly losing in purchasing power.
Even equities seem to be able to catch a bid right now, which puts the E-Mini in a possible trend configuration. What I’m waiting for right now is a little correction followed by the formation of a spike low. If things continue to look dire for the Dollar, especially after Draghi’s speech on Thursday, then this will most likely be the money trade throughout the remainder of this summer.
Before we get to the campaigns I wanted to point your attention the long term perspective on gold, which is starting to look pretty interesting. This could either turn into the last kiss goodbye setup of the year – or gold is ready to squeeze a boatload of shorts in the not so distant future. For the former scenario I need to see weakness here for a day or two which produces a spike high on the daily and perhaps even a retest. For the latter we need a push higher followed by a retest of the 100-week SMA. Just entering here on a hunch is possible if you are equipped with a crystal ball of course 😉
I posted the corn setup for everyone yesterday and I hope you took it as it seems to be taking off. Our stop is now trailing a bit below the recent spike low. Keep it loose however as we’ve got a ton of volatility here obviously.
Soybeans was another entry (for the subs) and it’s looking good after our desired entry range was snagged. A bit too early to advance our stop but if it can make it above its 100-hour SMA then we should be in good shape.
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