Saturday, May 14, 2016

US Dollar Index HUGE Bull Flag

This chart going back to the 1960's of course is in support of Marty Armstrong's bullish view going into the near future, the far future is probably extinction by debt. It appears that the consolidation of the past year is a back kiss of the top wedge line, if correct this means Gold will collapse hard.

7 comments:

  1. I respectively disagree. If this was true, gold wouldn't have a few technical setups since the beginning of 2016, cup in handle formation from November to the end January, which broke out. Now we have a big bull flag, which has broken out at the end of April. If you look at the yen it seems to be breaking out too. Its following the 50 day moving average. Now a few things could happen to substantiate your idea which is if the BoJ or ECB increases their QE, but the last meeting the BoJ introduced negative interest rates the yen took off. Another possibility is if the fed raise rates. We can all agree that the fed doesn't want a higher dollar since this puts pressure on earnings and several companies mentioned this in the Q4 earnings calls. If you factor in that employment is peaked and layoffs have already started, also weak GDP #'s, its a safe to assume the dollar is going lower.

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  2. It is not about what the fed does, it is about capital seeking shelter as the debt crisis unfolds, as the European union falls apart and capital flees into the usa, this will also cause other countries to panic and have to start covering their US dollar loans. The canadian dollar is already breakings support and I have projections for big low next winter, it is closely correlated to Gold. Armstrong's computer is talking maybe 50 cents by 2017 otherwise it will keep going down into 2020.

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  3. Gold has a bear flag not a bull flag now.

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  4. Note that Martin Armstrong is bullish on both gold and USD

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  5. Armstrong is not bullish on Gold, he is looking for a test of the 1980 high. Gold is priced in US dollars, if the dollar goes up Gold will be forced down.

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    1. Armstrong is a snake salesman. Gold rose in the 70's -80's with interests rates at 22℅. Go figure.

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  6. To clarify my statement about gold's bear flag, that is on the weekly chart, the daily chart of course has a bull flag and if you look below you will see I posted projections for a rally into the summer. Longer term I do not believe gold is bullish and will break down again.

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