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WHAT’S IN YOUR WALLET? WANT A LOOK AT WHAT IS REALLY GOING ON?
- By Terry J. Atzen
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- 02 Jun, 2016
The US Dollar firmed up in May after sellers took it to a new, recent low of 92. The uptrend is still in place, however what concerns me (aside from our nation’s $19 trillion in debt) is that each of the succeeding columns of Os are lower than the previous one.
Those of us that carefully watch Point-and-Figure charts know that this is a warning flag for a reverse in a trend.
And, the chart of UUP (long the US Dollar) seen below (as one would expect) looks very similar to the Index above.
Buyers are clearly dominating so far this year in UDN, betting that the US Dollar will go lower.
And, here the column of Os are each higher than the previous ones – again, an alert that the trend is changing.
It is my contention that there is only one factor that determines if an ETF (or a stock, or a bond, or a commodity, or a Cadillac, etc.) goes up or down.
That one factor is whether there are more buyers than sellers, or conversely, more sellers than buyers. It is the prevalence of one or the other that determines the direction of the price of anything – including the US Dollar.
I, for one, want to monitor what my dollars are doing.
Terry J. Atzen, Founder
The Investment Compass – www.theinvestmentcompass.com
Weighing-In on Gold and Silver……..What’s the Real Truth
In the past few weeks, I have been amazed by the extreme range of predictions on the price of Gold and Silver (Harry Dent [ www.economyandmarkets.com ] says $750 and Jim Rickards [ www.silverdoctors.com/Jim-Rickards ] says $10,000), so I decided to weigh-in on the subject (without the predictions!).
Let me say first, that this is a great example of why I wrote my book and why I do the work that I do.
Pundits can, and do oftentimes confuse investors. This creates doubt and causes investors to ask, “Who do I believe? Who is correct? “What is the Truth?”, and as the result, end up doing nothing when their personal instincts say otherwise.
My work is about “What Is” – logical, simple and easy to understand.
As usual, my analysis begins with an index, in this case, the Index for each of the metals, then the respective ETFs as well as the Inverse ETFs for verification.
And, at the end of this blog, I will take a look at the Gold/Silver ratio that many folks like to monitor.
First, the Gold Index:
Update on Gold
Gold has been a “hot” topic in the media so I decided to check-in on the subject – showing you what is really happening.
First of all, the Gold Index: (If you click on each chart it will make them larger)
Once again, stocks are at a critical level and investors need to be aware of where the stock market is and pay attention to their stock portfolios.
As you can see from the chart below of the S&P 500 Index, stocks made an amazing recovery from the 1820 level (twice this year) and ultimately reached the previous high made last year (at 2110).
Currently, the chart below of shows that prices are once again at a critical level as buyers and sellers continue their daily trading.