Wednesday, February 18, 2009

US Dollar Break Down and the Moment of Test for Obama and the markets. GDX, DIA, SPY, QQQQ, TSE, CDNX

US Dollar managed to shoot up from recent consolidation at weaker Double Top formation. Dow and SPX are at November lows. Gold, Silver, Gold miners, TSX and China FXI are showing more strength and much higher then in November. It is the Obama's moment - so far all mambo jumbo from Secretary of Treasury was not worth our attention apart from new waterfall of money. Nothing to analyse - directions instead of an action plans. Will they manage to revive the expectations today and tomorrow and deliver with the help of invisible hand of PPT rally from a more solid bottom as a double one? Below 7500 banks and insurance companies will be insolvent in mass, not just few of them, markets will become indefensible and new Bear Leg could go to Dow 5000. US Dollar above November high means Deflation and Depression and not only for USA. What will change the things as they are? Normally it is the point of total desperation when the bottom is formed. We are very close, but clear action must show that the FED is winning against Deflation. With all other things equal Gold is showing it very strong. Silver is very close to 15USD when investors will wake up and start to chase it again. We do not like to live with our golden eggs among the ruins, so Mr Obama it is time to stop to be a rock star and act as a crises manager: let the Green Fellow rest from recent struggle with gravity, Inflation will prevent Total collapse and we will enjoy slow motion deterioration and change of things.
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