The Dollar Will Top Soon

The market is definitely pricing in a Clinton victory and it is almost certain now (assuming the pols hold up) that we have an intermediate cycle low in stocks. Furthermore crude oil also rallied on the news on the FBI clearing Clinton which probably means we have a daily cycle low in crude also. I got some emails from some nervous traders currently with long precious metals positions. I don’t see anything that will tank gold in the near term and actually after the strength we got in the dollar today, I feel this will end up only being a temporary event. In fact, I’m expecting the dollar to roll over and head south once we print a firm top in the index which will be shortly (as sentiment is saying so)

nov07-04

The dollar (NYSE:UUP) has been making lower lows and has failed to make higher highs since early 2015. Furthermore technical indicators are staing that it is near a top. I would advise getting long the US index at this stage.

nov07-05

This is going to have ramifictions for Gold (NYSE:GLD) and shoud lift Gold off its present trading range. Again, I repeat, there is nothing to suggest that Gold is going lower. We have just started an intermediate cycle and until those lows are broken, traders should very much stay long. Equity investors should get a mild pull back tomorrow which would give an opportunity to get long some positions. The one outlier is if the elction drags on which the market wouldn’t like. Then you are going to get a spike in the VIX which would just increase the buying and selling. Hold your nerve, stock to your long term opinions and ride this out for the next few days.

 

 

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