A Flood of Dollars – And Golden Rain

As the mighty Hudson River swelled and unleashed its fury on the Jersey Shore – so too it appears that The U.S Federal  Reserves “flood of dollars” is set to break the levees in global markets.

The dollar looks to continue its turn downward – and this gorilla is calling for rain……………..”golden rain”!

Overnight gold has popped 8 or 9 bucks and is certainly looking ready for a fast break to the upside.

My accounts as well popped an additional 2% – and (if you can believe it) have already taken profits – looking to re enter here mid day / this afternoon after the usual “morning shenanigans” play out.

I never EVER worry about missing a trade after taking profits and looking to re enter in that:

  • One has to be thankful when things go their way so early on.
  • It always feels “amazing” sitting 100% in cash (especially when there is more of it than the day before.)
  • There are a million trades – and no “train is gonna leave the station” in a 24 hour period – without a large percentage of retracement / opportunity to jump back on board.

Things are looking good across the board for continued “Risk On” in markets – and the same strategy is currently in play – Short the U.S Dollar and Yen against the Commods – as well long n strong EUR/JPY.

I might pick up another couple pairs here today (long GBP/JPY,CHF/JPY) with small orders and wide stops as these can rip your head off without a moments notice.

3 Responses

  1. Schmederling October 31, 2012 / 1:21 pm

    Kong – I still think we will just see a bounce & a final leg down in the PM & one final leg up for the buck before making it’s turn… just my 2cents…. however your knoledge of currency is more extensive then mine….

    • Pot Stock Watch October 31, 2012 / 1:36 pm

      As I am back in cash – I welcome it!

      I have been itching to pull the trigger in the gold sector – and would be thrilled to see things take another dip lower. As it stands….the currency markets are most certainly looking at “further dollar weakness” – but nailing it down to a single day – well……..not likely.

      I see gaps up / down all over the place in GDX – and still keep hoping its got another dip lower in it – but once again here this morning – looking very strong. Hey…..you cant win if you dont buy a ticket right? I will have to dip my toes in here soon – very soon.

  2. Schmederling October 31, 2012 / 1:57 pm

    Looks to be stuck currently – I could be wrong… would not be the first time…. I am waiitng for limit orders to fill on ACI….

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