» Currencies

Since rocketing to new all-time highs last summer, gold has weathered a major correction.  While that selloff was healthy and necessary given the excessive optimism that catapulted gold to very-overbought levels, a strong US dollar accelerated gold’s swoon.  But with the dollar now as overbought...

A very odd day indeed. BAC up 8% on no apparent news was the biggest sign today was more a short squeeze or yield chase than anything else. To be fair the small and mid caps did put in quite a bullish reversal off the session lows but that too would point towards a short squeeze and or chase for yie...

One of the most important elements of entering a longer term trade is understanding why you are doing such. Price will go higher or lower alone is not sufficient. You need to understand the basis for such movement in price. That way as the trade evolves you can begin to understand if your thesis is ...

The centrally-managed rally of March 2009 is over; reality is finally intruding on the manipulation and propaganda. A good way to generate hate mail is to question 1) Santa’s “guaranteed year-end rally” and 2) the notion that market rallies always resume soon enough because of the ...

The long-in-the-tooth commodities correction plunged to new lows this week.  Traders were disappointed the Fed didn’t announce a new quantitative-easing campaign, so they dumped the popular commodities with a vengeance.  But realize the primary driver of the recent commodities weakness is not th...

Commodity expert Dennis Gartman certainly struck a nerve in the financial community as word hit the street of his call on gold in the latest Gartman Letter(subscription required). Here is the gist, as reported by Bloomberg: “Since the early autumn here in the Northern Hemisphere gold has...

The US Dollar Index appears to be setting up for a medium-term double top. This week it broke down through a short-term rising trend line drawn from the October low after reaching a level equal to the October top. The PMO made a lower top, creating a negative divergence. The 20-EMA crossed up thro...

Another day where equity and credit continue to diverge from one another. From treasury yields falling to sovereign debt yields rising to multi year records in EUR basis swaps, sovereign CDS, etc credit is pricing in continued risk to the global economy while equity goes the other direction. At the ...

Angela Merkel is leading the call for a rule change, a rewiring of the basic treaty that binds the EU. But is it both too much and too late? The market action suggests that time is indeed running out, and so we’ll look at the likely consequences. Then I glance over the other way and take notice of...

The ‘accident’ many have been waiting for has finally happened, and it’s called Europe. That doesn’t bode well for the U.S. stock market. A lot of technical analysts and financial pundits are expecting a standard-issue Santa Claus Rally once a “solution” to Europe...

Lots of things tugging on the price of gold today. For me, the most important factor was the threat of another devaluation of the Swiss Franc. The headlines from the Swiss papers: . . The last time we had headlines like this the EURCHF was 1.05. Not long after it was 1.21. So it’s not surprisin...

Below are trading range charts for 10 major commodities from the Bespoke Group.  All 10 commodities are currently at or below the bottom of their trading ranges, which would suggest at the moment, a good opportunity to get in at oversold levels for investors looking to gain long-term exposure. How...