Monday, December 28, 2009

Gold Down and US Dollar Up in December: Temporary Fund Repatriations

The US Dollar has recovered quite a bit in December. It is possible that this is due to fund repatriation by US companies doing business abroad as they convert their gains in foreign currency back into US Dollars. If this is the case, then the appreciation of the US Dollar would be temporary and the fall would resume in January. This would include the recent fall in gold (plus the fact the Paulson is launching a huge gold fund in January, thus prices needed to be lower).

This is the chart of UUP. Trend is marked in blue, buy/sell signals (triangles) are indicated by the drawn red circles.

This is the same for USDX:

And this is the same for GLD, which follows the inverse of the USD:

The buy-sell alerts (green or red triangles) are weekly signals generated by INO's MarketClub Tool. Please do see the signals above. You can use this link to get free access to the tool (it's a risk-free trial, no questions asked if you are not happy), and please see the numerous backtesting tests I have done with them.

NOTE: INO is providing a special 2 bonus months to Shocked Investor users through this link

You can also see the trading videos and course (totally free).

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