Much to my chagrin the Euro has advanced to an inflection point that marks the possibility of a major break out to the upside. Why anyone would abandon King Dollar and instead bet on a fiat currency that’s practically lingering in its death bed while being kept alive via an ECB deposit rate of -0.5% is way beyond my pay grade.
Last Friday I talked about gold getting ready for a break-out to the upside, which – for reasons explained in my post – I happened to be a wee bit skeptical about. As I always love to quote myself here’s the final assessment I offered:
I see a lot of conflicting opinions about gold recently and since nobody wants to talk (or think) about equities every single day I decided to do a post about it. And what I found in the process was rather interesting. In order to tell this tale let’s first look at the one instrument with which gold continues to ‘enjoy’ a close correlation:
Even a cursory glance at the recent price gyrations in equities is sufficient to make one want to pick up a new hobby or mistress. However it bodes repeating that statistically the worst period of the year is now behind us with much seasonal bullish bias ahead until late spring of next year. Which of course doesn’t mean we’re all in the clear just yet.