ManAboutDallas

U.S. Treasuries in a Bubble, Not Commodities

It's the last-gasp attempt by the Fed to manage the yield curve and pretend "everything's ok". The inevitable can be forestalled only so long, however. The pin this bubble will find is when either:

1. Gold tops $1344; or
2. Oil reaches $100 again.

At that point the US$ will be carried off in a body bag and it'll be "Weimar, Part Deux" time.

Friday Outlook: Commodities, Global Markets

The rally has one more upside target, using the Dow as proxy. That target is DJIA 10,344 which is the 50% Fibo retracement of the Oct 2007 top to the Mar 2009 bottom.

A nice two-week, 700-point Dow rally into mid-October will get the Chumps nice and buttered for the Toasting-to-Three-Thou...

Last year was just the warm-up act, boys and girls.

Gold Holding Strong Against Dollar

Ok... right on time... right on cue.... the $ rally is underway. Where's its target ? Just a peek over 80 on the Dollar Index, where it will run into .618 Fibo resistance from the July decline.

Gold Holding Strong Against Dollar

Huge, scary, but brief US$ rally about to commence. Notice how they engineered a head-fake slightly-lower low on the Dollar Index from the early June low ( 78.315 vs 78.334 ). If The Collapse were upon us, they would have taken out that early June low and we'd be in free-fall right now. Notice how they're engineering a gold and silver mugging this morning? Usually this sort of gold/silver mugging takes place on a Monday morning, but they set the trap for this morning, instead. All the dollar bears have just been buttered up for a two-week toasting. Take advantage of it to get ready for The Real Collapse once it runs its course.