Several nations, including Thailand, Germany (of course) and India, have warned against spreading coronavirus-related misinformation on April Fools’ Day, with some countries even threatening jail time for perpetrators. Which makes me wonder: Had the same regulations applied in late February going into March, then wouldn’t many politicians and so called ‘experts’ in the West be sitting in prison right now? But heck, what do I know? I’ve only been warning about the global threat of COVID-19 since February 7th.
Gold has greatly benefitted from recent Dollar weakness and in particular due to its close correlation with the USD/JPY which began in 2015 and has continued to this day. In fact if you overlay the Yen onto a gold chart then you will see that they follow each other very closely, with the latter usually leading large swings to either side.
Welcome back! Despite much fear mongering the S&P futures have been holding strong over the long weekend and are now mere handles away from breaching their final long term hurdle. In retrospect that falling diagonal resistance line on the daily was the perfect bear trap – and once again one we fortunately didn’t fall for. As a matter of fact, if you dropped by here last Tuesday morning then you may even have snuck* yourself a few long positions ahead of this ongoing short squeeze as the writing was clearly on the wall.