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Graham Summers’ Free Weekly Market Forecast (Inflation Explosion Back On Edition)
The Euro just eeked out a new high, invalidating
the Head and Shoulders pattern and setting the stage for additional upside
gains to 145 or even 150 if things really take off. It’s extraordinary given
that the European Union continues to collapse (Portugal is next up on the
block).
This rally
in the Euro has coincided with further weakness in the US Dollar, which has now
taken out its 2010 low, leaving the 2009 low and 2008 lows as the final lines
of support before we enter uncharted territory.
The weekly US
Dollar chart is even uglier, revealing that we’ve not only broken multi-year
support but have rallied to retest this level and failed to reclaim it: a
classic pattern that typically precedes sharper sell offs.
Elsewhere in
the markets, Gold is a hair away from hitting a new all time high priced in US
Dollars. The bearish rising wedge remains in play. We bounced hard off the
lower trendline setting the stage for a potential rally to the upper trendline:
near $1500.
In other
words, the great inflation hedge explosion continues fueled by an exodus from
US Dollars into commodities of all kinds.
Good
Investing!
Graham Summers
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Yeah okay - so basically there is no fundamental reason why nor a technical for the Euro to be trading up ? There is always a fundamental reason and it can be a number of things .
1- dollar is going the way of zimbabwe
2- Europe is tightening /raising interest rates much higher
3- Economy in europe is growing rapidly
4-Euro countries are buying large amounts of PM's
5- Euro is now the flight to safety (if risk is off)
6- The sovereign crisis in the EU isn't as bad as MSM reports
7- ECB and Fed Reserve have decided behind closed doors the EU will become a consumer based economy and US will be it's supplier . (not likely but being this world is now square and people are rewarded for being evil ...)
But it's only China manipulating its currency isn't it? Certainly not the USA...
DavidC
There are no heads and shoulders; this is one of the made up delights of the chart readers that has been examined by professional statisticians and found to be meaningless/non-existent. The actual chart he posted shows a series of declining highs for the upper bound of the channel; the high is in for this move; the Euro will trade lower now for a month or two. It must be difficult to be in business and be this bad at understanding what's going on.
Yes, but Tim Geithner, and Hank Paulson, our past two Treasury Secretaries, both believe in a strong dollar.
Once dollar crash is over, the multinational corporations get really sad. Unhappy.
Yes, but Tim Geithner, and Hank Paulson, our past two Treasury Secretaries, both believe in a strong dollar.
As rule, I don't drink.....as a habit I do, but as rule I don't.
tough shit ........... let them be sad ........ it's them or us & I'm sick of these people ruining things.
but they own the USA and you don't...main street owns the debt. Wall street owns the profits. That's it. Whose going to 'bell the cat' ? not the government. They are in bed with the TBTF. So there...its mega inflation time and then...your guess is as good as mine.
End the criminal Federal Reserve Bank .... for all our sakes & future generations.