The ever-growing camp of gold bears and weak-knee bulls had every reason to cave in gold today with the big short Commercial hedgers/long specs on the Comex. Yet as I type, gold has come roaring back. If you’re a bear you’ve to start asking yourself what else will it take to take gold down? Better yet, are you about to get your shorts squeezed?
Special Alert – U.S. Dollar At Key Point
The terminally ill U.S. Dollar is trying to remove itself from its respirator for a while. Record low bullish sentiment in the Forex pits combined with it brushing up against the top of a clearly defined downtrend suggests it needs careful watching for the short term at least. A close above the 50-Day M.A. around 78 would be the first real sign a counter-trend rally is underway. Any such rally should be held around the 200-Day M.A. in the 82 area.
Tomorrow’s employment number could be the ignition so stay tuned.
Ed Note: Unemployment story HERE. US Dollar down on the news:
On Major Moves, Grandich has been very right and not only saved many investors fortunes, but expanded them dramatically. On November 3, 2007 at the MoneyTalks Survival Conference, Peter Grandich of the Grandich Letter warned that “an unprecedented economic tsunami will hit American beginning in 2008”. Peter advised publicly to short the US market two days from the top in October, 2007 and stayed short until the last week of October, 2008. He began to buy stocks in March 7th, 2009. He also bought oil and oil related investments near the lows after the dive from $147.
….go to visit Peter’s Website.