The USD - Is it real or is it Memorex?
posted Dec 8, 2004 at 05:54PM
Looked by itself, today's price action did nothing overly significant. What was significant was the reaction of bullion which saw dramatic downside.
So right now my thinking is that this move from the USD is NOT a head-fake. When you look at the longer term chart one sees that from a TA point of view (not fundamentals) all the requirements for a counter trend rally of surprising strength and duration is at hand.
We will know soon enough. If it is for real we should see follow through strength over the next few days.
My mindset on any trades in the gold sector is that it should be strictly ultra short-term bounce trading.
So far the maxim of avoiding weakness has been good for preserving capital. I see no reaason to change that credo.