Gigem77

Has the Dollar Hit a Major Bottom?

Since this article was written on 17-August the dollar has tanked from over 79 to a new yearly low of 76.46. Gold has risen from 930 to 1011. Silver ran from 14 to 17. The S&P 500 has risen from 975 to 1048. Prechter is wrong again. Everybody who took his advice and bought the dollar, shorted gold and shorted stocks, has lost money.

Has the Dollar Hit a Major Bottom?

Prechter was bearish on stocks through the 90's, ouch! He was wrong about gold in 2001, 2002 and 2003 and still is. He was wrong about interest rates in 2004, clinging to the notion that falling stock prices would cause higher rates when in fact just the opposite happens. Is it so hard to imagine that he is wrong now about the dollar and deflation?

Gold and Silver: To Buy or Not to Buy?

The fundamentals were much touted as bullish last year. Gold broke over 1000 and then fell for months until it hit 680. The charts don't look so good either. Look at a daily or weekly chart for the past 2 years. Do you see the double top just over 1000? The price is already more than 10% lower. It looks like a re-run of last years swoon is well underway. Next support is at 850, then 800. Will 700 be hit again this year?

The ECB dumped 35.5 tonnes of gold on the market last week. The IMF is preparing to sell 400 tonnes already approved by the G20. World mining production is running about 20 tonnes per week. Demand from India is nearly zero. Will investment demand continue to take up the slack as the broad market rises or will money flow back to stocks?

When the GLD holders decide that they would rather have some solar stocks or some biotech, look out below.