Has the Dollar stopped going down?
November 20, 2009 · By Adam · Filed Under Trading Videos
The markets are always interesting, but they are particularly interesting right now.
Today we’re looking at the dollar index and some important elements that I see building in this market and want to bring to your attention. In this short video I outline the key areas to watch for and one important component that you may not have seen. I think this factor could, in fact, be a short term game changer for this market.
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All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Dear
i want more infromer chart, as like candel chart disloite chart, ruff chart, bar chart, codolide chart,
The dollar has not established a floor for the current economic climate. In March, 2008 the dollar was 70 and gold not at its realized value under normal value intability. Accordingly, the shift will be a decade long and gold will be the financial instrument for the dollar to be deleveraged internationally in favor of a more ‘growth’ oriented currency. Unfortunately- time is volitility that few can stomach. But the USD will get lower until at an equilibrium there is a floor established, yet again.
How will this affect the Gold progress towards $1300?
Jerald,
Thank you for your feedback.
As I said before I believe that gold has decoupled from the other markets. If that is correct then even if the dollar rallies and that’s a big if at this point, gold could still continue higher.
All the best to you.
Adam
Hello,
I really appreciate your effort, having taken your precious time to provide this valuable analysis for your fellow traders. Keep up the good job
You are blessed!
At the same time a similar situation is going on in the stock market. That is, that a trend change seems to be coming. I guess it’s not a coincidence that they coincide. Seems like a mutual confirmation.
Traders are getting out of stock into dollars.
Bring on the higher dollar so we can short commodities and make some big money in time for Christmas :o)
I have found your analyses to be helpful and I appreciate your generosity in sharing them. Keep up the good work.
Hello,
I enjoy your video in the dollar, I agree on the outlook that you provide in general. my question is what makes you think that this is just a short term move and not a multy month advance.
Thanks
Hector,
Thank you for your feedback.
It’s too early to tell but I do feel that the positive divergence on the MACD will push this market a little higher. Once we get more clues we will be able to better decipher where the market is headed.
All the best,
Adam
Adam, the dow and nasdaq videos are great. can you possible post a video of the QID chart. It tracks the Nasdaq 100 and seems to be at or near an all time low. It may also be a good indicator of the potential market turn down.
Much Aloha,
Rick
Bring on the Tanking Dollar. I’m long on physical Gold & Silver
The inverse correlation USDX Gold appears broken while the inverse correlation WTI crude future ( and some industry metals) remains intact.
Also the correlation USDX / S&P500 USDX / $BKX remains intact indicating USD as carry trade fueling stocks index.
But what about gold? That is somewhat strange.
Given China would weaken the yuan / USD peg wouldn’t that consequently drive USDX up, plus extra impetus from increasing weakness of Euro zone economies?
It appears Obama administration is closing ties with China leavin Europe standing in the rain…
Adam,
Very generous of you to share your thoughts and experiences. Looking at the line graph of the DX it seems the trendline got taken out by the price action on 26 Oct. That trendline touches 5-6 points.
Adam,
I enjoyed your video in dollar & oil and thanks for that. However normally usd and oil move opposite direction. So which one would you think is going to move up first??? Many thanks in advance.
Kind Regards
Sathi
It looks like the dollar is gaining strength against the Euro recently. This may cap gold prices and the overall market for a while, until (and if) the dollar resumes its downtrend.