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Sunday, February 01, 2009

US Dollar: Second Double Top - Treasuries are losing to Gold. DXY, HUI, XAU, GDX, AUY, SLW, TNR.v, RMK.v

Dow hit 8000 again, below 7500 will be a waterfall. Line in the sand is a new double bottom on daily chart to follow with 8000 for a rebounce rally. Treasuries are in a full moon thriller phase - Chinese must be forgetting to buy more of these stuff during their holidays. Green fellow is feeling the post holiday blues and painting a second weak double Top after November 2008. Investors are voting for a bad bank and fearful of nationalisation of all banking and insurance sector. It will be an only outcome below 7500 in the Dow, so wait for announcement of Bad Bank next week latest. Nationalisation means all shareholders in financial sector will be wiped out immediately and forget about the rally and Inflation Recovery. Bad bank is not as bad as its sounds after all. Shareholders will get a slow water torture by Inflation dilution, but will be left with a capitalist dream. Most important system will be saved for a credit flowing. How much will it cost - we do not have any idea, but Gold seams does and running out of its shadow masters this week. All charts are aligned for Obama decisive move: US Dollar to go down from second Double TOP, next week move down will show low RSI for second top, STO will turn negative again, MACD is at much lower positive momentum compare to November panic. Treasuries TLT are helping with their Bubble Bursting stage, chart to follow. Gold is very strong and finally acting as a real safe heaven. Just 1% coming out of treasuries and going into Gold market will increase Demand 100%. 8 trillion dollars are sitting on the sidelines according to some estimations, Mr Obama it is your turn to call! Bold and swiftly - we like it, Gold like it let's do it.

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