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Sol Palha is the head financial analyst at Tactical Investor. He is a self-taught Student of the Markets, having widely read conventional and non-conventional texts on all aspects of technical analysis, Mass Psychology and philosophy (as he believes it can be quite useful in terms of market... More
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  • Precious metals defy the dollar; a sign of impending trouble  2 comments
    May 4, 2010 11:51 AM | about stocks: PALL, SLV, GLD, GDX, CUT
    Gold has rallied to new highs in the Euro, and it continues to defy the dollar; instead of pulling back it continues to put in higher lows, a very long term bullish pattern. It has also just closed above $1175 on a weekly basis and has thus set the base for a test of its old highs. The entire precious metal's sector appears to be sensing some sort of future disaster for it simply refuses to correct strongly even in the face of a very strong dollar. If you have no position in the precious metal's sector, use pull backs to open up a position. If you already have positions, then use strong pull backs to add to them. A major currency crisis is going to strike, it’s just a matter of time and precious metals thrive in such condition
    The dollar has just rallied to a new 11 month high and will soon put in a new 52 week high; in contrast Gold has refused to trade below its Feb 5 low of 1045. In Feb 2010 the Dollar was trading much lower and so by logic Gold should have easily dipped below its Feb 2010 lows, instead we find that Gold is just a hop and skip away from testing its old highs. Gold has now put in new highs in all major currencies.   The strongest out of the bunch has been Palladium, which went on to put in a series of new highs in the face of a rising dollar. These extreme divergences indicate that the precious metal's market is sensing another crisis in the not too distant future; our guess would be another currency crisis.
    Obviously, the best hedge against a currency crisis and an inflationary environment is physical bullion. ETF players can purchase SLV, GLD, CUT, GDX, PALL, etc.
     
     

    Stocks: PALL, SLV, GLD, GDX, CUT
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Comments (2)
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  • mustafad
    , contributor
    Comment (1) | Send Message
     
    Trouble is coming, time to bring the sails down and prepare for hard times, a very strong storm is in the horizon
    4 May 2010, 02:52 PM Reply Like
  • georgef1
    , contributor
    Comment (1) | Send Message
     
    Amen to that
    4 May 2010, 02:58 PM Reply Like
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  • Traders should use wait till year end to open up shorts in Euro and longs in Dollar
    Dec 20, 2011
  • Dollar will correct sharply, Euro will mount a strong rally probably till year end. Long term the euro rally is not sustainable
    Dec 20, 2011
  • Dow rallying as predicted. we stated that Dow would most likely rally around the 23d http://seekingalpha.com/a/6qk4 and http://seekingalpha.com/a/6q0p
    Dec 20, 2011
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