You will appreciate analysis by Toby Connor more when you realise that this article was posted on Monday August 12th, just before the big move in Gold was confirmed this week. We like his concept of the Megaphone Top in US dollar and are watching closely the unfolding of that technical situation now.
"We would like to share with you today very interesting observations from the currency markets by Toby Connor. Recent volatility in the currency market was exceptional, particularly, when you consider that equity market was moving almost always in one direction - Up. Equity market volatility is at the record low and it looks like the real action now is in the US Dollar camp. Gold will follow this development fuelled by physical shortage as well.
This concept of "Megaphone Top" in US Dollar is very interesting and we have seen its brutal Bearish resolution in 2008 in equity markets before."
"James Dines talks about new Super-Major Bull Markets in the making, which are still invisible for the crowds. He praises Tesla Motors with its disruption of auto-market and 3D printing technology. We think that our ideas about Lithium will fit nicely in this trend.
Original Gold Bug has recently reinstated his Buy Call on Gold. His observations are correlating nicely with the technical picture provided by Adam Hamilton in his latest piece:
"Adam Hamilton provides now a very compelling case for the General Equity Markets and GLD relationships and correlations and if you do not think that trees can grow straight up to the sky we are at the historical point in the markets development in the age of FED central planning now."