I think you will admit
that we are in the middle of one major crazy financial mess. The part
that makes things really crazy is that it’s not just in the United
States anymore but rather serious global problem which if not handled
properly could change the way we live our lives going forward or possibly
even spark some type of war, hopefully things don’t get that
crazy… But I do know one thing. Fear is the most powerful force on the
planet and people do some crazy things when they are backed into a corner.
Anyways, on a more positive tone… today China
decided to help provide more liquidity for the financial system along with
the central banks. This news triggered a monster rally in overnight trading
making the market gap up sharply at the opening bell. This news did hit the
US dollar index hard sending it sharply lower but the question remains
“Will today’s news be a one week hiccup in the market?” If Euroland starts printing money it will likely send the
dollar higher and stocks lower for 6- 12 months.
Just today I was joking with Kerry Lutz of the
Financial Survivor Network about how each country should just give
each other country a second chance. Wipe the dept
clean and start over knowing this time around exactly how each country truly
operates at a financial level allowing everyone to avoid a repeat of this BS.
Some countries will get off way better than others because they would get so
much dept wiped clean but isn’t it better
than years of problems and possibly wars over food, gold, guns, oil and
Canadian water? – EH
All joking aside, let’s take a look at the
weekly long term charts…
Dollar Index Showing Possible Massive Rally If Euro
Starts Printing Money:
I’m sure my off the cuff options/thoughts will
cause a stir but I am fine with that. Everyone I talk to is thinking the
dollar is about to fall off a cliff while I think it’s very possible
that it does just the opposite. Either way I will be looking to benefit from
which ever move unfolds.
Weekly Gold Chart:
Weekly Silver Chart:
Weekly SP500 Chart:
Long Term Thoughts:
I would first like to say that tonight’s
report is out of my norm. Generally I do not focus on the big picture
negative stuff and I like to avoid it for a few reasons… One,
it’s just downright depressing to talk and think about. And Second I
don’t want to be labelled as one of those
“The Sky Is Falling” kinds of guys.
So, that being said I think these charts above show
a situation what is very possible to happen in the coming 6-12 months. Keep
in mind that my focus is on short term time frames as it allows me to avoid
and actually profit from major market moves while providing enough
information for my followers to learn technical analysis and trade
management. And the obvious idea of not looking too far into the future with
a negative outlook…
With headline risk changing the market direction on
a weekly basis, this negative outlook could easily change in a couple months.
I will recap on the big picture as things unfold in January/February.
Talk to you soon,
Editor, the Gold and Oil Guy