Thursday, October 22, 2009

S&P 500 and USDX

the S&P 500 and the DX index are still moving in lockstock inversion, this chart posted by Bespoke over the past week shows how negitively correlated the two are....

Tuesday, October 20, 2009

Gold out performing the $USD?

just glancing at the Finviz relative performance graphs it was interesting to see that Gold actually outperformed the USD on a strong dollar day..... this is rather odd as we know usually a strong dollar day relates into a massive sell off in gold, this should be interesting to see how a weak dollar will now effect gold

Bank of Canada holds Rate steady

today the bank of Canada Held the rate at 0.25% and the currency markets acted as they should, the CDN lost over 2% at one point during the day. it seems as if traders were at first expecting a rate hike similar to the Aussies

we can see on the 10min bar chart after the 9:00 am announcement the USD/CDN ran nearly 225 pip's..... bigest one day loss for the CDN in over 4 months

on the daily bar chart the CDN$ might be oversold and due for a minor correction, this could last up up around the 1.08 to 1.09 area

Monday, October 19, 2009

Great Chart of The CDN in US$ terms and major currency terms

Heres a chart from Rosenberg... this shows how the CDN dollar isnt just a USD story but supported by a multitude of currencies. It appears as if the world is chasing a currency backed by hard assets, the AUD wchart would look very similar to this.

Tuesday, October 13, 2009

GOLD new record high

I've been meaning to post about this for the last couple days or so.....

its clear now that the initial target of 1250 and 1650 are in target real soon

I've posted some of the updated charts on the golds dec contract with an analysis of the indicators. on the fundamental side its clear that central banks around the world are looking to get out of the dollar and are diversifying their foreign reserves as fast as they can, especially the 800 lbs gorilla in the room china. the appitite of Asian investors for the yellow shinny stuff is totally different than in the western world. here we have advertisements of "cash 4 gold" and "we buy your gold" it seems as if Asian investors are holding on to the metal as it is their insurance and has no where to go but UP from here.

here is the latest chart, on the daily bar chart the candle stick formation and trend appear very strong..... the MACD has crossed over and the Divergence is now positive, the RSI is approaching 70 but this strength should continue and not act as a contarian selling point, the TRIX has also crossed over..... the rally should last for at least a week or two more before a pullback

heres a look at the 60min bar chart taken a little bit later, the 60 min is showing a very nice trend