Tuesday, December 20, 2011

Hopium is all this market has left

For all the hoopla, the dollar is simply retesting a breakout. This was something that I expected but with Cup and Handle patterns you quite often will not get a real retest. However, today’s move in equities and he EURO essentially could only move the Gold market roughly up $16.50 (it should be up roughly $110 higher at this point given the action in other key markets - but Tyler Durden or Morgan Stanley are all to happy to ommit that part) and silver around 50 cents at the time of this writing…this indicates just how much hopium is embedded in the moves.

Below is an example of more freshly smoked hopium…Tyler just does not give up...
The pullback in the dollar offered wonderful opportunities for attractive prices which apparently insolvent European banks are not letting pass without being noticed…I also, did not let the dollar prices go unnoticed.

The spread between the Dollar and inverted S&P500 has not come in and will likely lead to a brutal resumption of the previously scheduled programming in the not too distant future.
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