MDunleavy
iticsoftware.com Representative
- Messages
- 185
A significant breakdown in the US Dollar will come AFTER a major breakout in Gold. Gold has been consolidating for months, even as the dollar has trended down. The recent bottom in the greenback confirms that Gold is still in a consolidation phase. In March we asserted that Gold wouldn't break 1000 because money would pour into stocks and commodities, thereby diverting Gold's strength.
Gold's relative strength has been poor due to the ensuing recoveries in stocks, commodities and foreign currencies. In recent weeks we noted this to subscribers as well as the fact that dollar sentiment was too bearish. Hence, we didn't see a major breakout in gold or a sustained breakdown in the dollar.
Where will demand come from (to push Gold to breakout) if Gold is underperforming currencies, commodities and stocks? In other words, money is favoring the other asset classes. This is why relative strength matters. And it also matters because it shows the 'real' price of Gold (something that Bob Hoye talks about). If Gold is rising against foreign currencies, oil and commodities it means stronger leverage for the Gold companies. We can compare and contrast all of these things with charts. Technical analysis is very effective if you know how to use it.[oilngold]
"P&F GOLD15 Box Size2 750X3 or(0.8%) HI/LO
Data 1070.58 - 984.99 ~ 1 Month ~ 29.79 Day
Database 2064 records 1050.67 (Last Close)
2009-09-15 18~45
2009-10-15 13~45 (GMT+01:00) Paris
BJF Trading Group"
1072.50|~275||________________________________________________________|-0.18%|8.88%
1069.75|~55O||____________________________________________________x___|0.08%|8.61%
1067.00|~825||________________________________________________x___x_o_|0.33%|8.33%
1064.25|~11OO|________________________________________________x_o_x_o_|0.59%|8.05%
1061.50|~1375|________________________________________________x_o_x_o_|0.85%|7.77%
1058.75|~165O|____________________________________________x___x_o_x_o_|1.11%|7.49%
1056.00|~1925|________________________________________x___x_o_x_o___o_|1.36%|7.21%
1053.25|~22OO|________________________________________x_o_x_o_x_____o_|1.62%|6.93%
1050.50|~2475|________________________________________x_o_x_o_x_____o_|1.88%|6.65%
1047.75|~275O|____________________________________x___x_o_x_o_x_______|2.13%|6.37%
1045.00|~3O25|____________________________________x_o_x_o___o_________|2.39%|6.09%
1042.25|~33OO|____________________________________x_o_x_______________|2.65%|5.81%
1039.50|~3575|____________________________________x_o_________________|2.9%|5.53%
1036.75|~385O|____________________________________x___________________|3.16%|5.25%
1034.00|~4125|____________________________________x___________________|3.42%|4.98%
1031.25|~44OO|____________________________________x___________________|3.67%|4.7%
1028.50|~4675|____________________________________x___________________|3.93%|4.42%
1025.75|~495O|____________________________________x___________________|4.19%|4.14%
1023.00|~5225|x___________________________________x___________________|4.44%|3.86%
1020.25|~55OO|x_o_________________________________x___________________|4.7%|3.58%
1017.50|~5775|x_o_x___x___x___x___________________x___________________|4.96%|3.3%
1014.75|~6O5O|x_o_x_o_x_o_x_o_x_o_________________x___________________|5.21%|3.02%
1012.00|~6325|x_o_x_o_x_o_x_o_x_o_________________x___________________|5.47%|2.74%
1009.25|~66OO|x_o___o_x_o_x_o_x_o_____________x___x___________________|5.73%|2.46%
1006.50|~6875|x_____o_x_o___o___o_____________x_o_x___________________|5.99%|2.18%
1003.75|~715O|______o_x_________o_________x___x_o_x___________________|6.24%|1.9%
1001.00|~7425|______o_x_________o_________x_o_x_o_x___________________|6.5%|1.63%
998.25|~77OO||______o___________o_________x_o_x_o_x___________________|6.76%|1.35%
995.50|~7975||__________________o_x___x___x_o___o_x___________________|7.01%|1.07%
992.75|~825O||__________________o_x_o_x_o_x_____o_x___________________|7.27%|0.79%
990.00|~8525||__________________o_x_o_x_o_x_____o_x___________________|7.53%|0.51%
987.25|~88OO||__________________o___o___o_______o_____________________|7.78%|0.23%
984.50|~9O75||________________________________________________________|8.04%|-0.05%
Column|~935O||7_5_3_7_7_4_4_4_4_113_3_3_3_6_3_5_8_223_6_4_5_5_8_4_5_7_|
Count
Gold's relative strength has been poor due to the ensuing recoveries in stocks, commodities and foreign currencies. In recent weeks we noted this to subscribers as well as the fact that dollar sentiment was too bearish. Hence, we didn't see a major breakout in gold or a sustained breakdown in the dollar.
Where will demand come from (to push Gold to breakout) if Gold is underperforming currencies, commodities and stocks? In other words, money is favoring the other asset classes. This is why relative strength matters. And it also matters because it shows the 'real' price of Gold (something that Bob Hoye talks about). If Gold is rising against foreign currencies, oil and commodities it means stronger leverage for the Gold companies. We can compare and contrast all of these things with charts. Technical analysis is very effective if you know how to use it.[oilngold]
"P&F GOLD15 Box Size2 750X3 or(0.8%) HI/LO
Data 1070.58 - 984.99 ~ 1 Month ~ 29.79 Day
Database 2064 records 1050.67 (Last Close)
2009-09-15 18~45
2009-10-15 13~45 (GMT+01:00) Paris
BJF Trading Group"
1072.50|~275||________________________________________________________|-0.18%|8.88%
1069.75|~55O||____________________________________________________x___|0.08%|8.61%
1067.00|~825||________________________________________________x___x_o_|0.33%|8.33%
1064.25|~11OO|________________________________________________x_o_x_o_|0.59%|8.05%
1061.50|~1375|________________________________________________x_o_x_o_|0.85%|7.77%
1058.75|~165O|____________________________________________x___x_o_x_o_|1.11%|7.49%
1056.00|~1925|________________________________________x___x_o_x_o___o_|1.36%|7.21%
1053.25|~22OO|________________________________________x_o_x_o_x_____o_|1.62%|6.93%
1050.50|~2475|________________________________________x_o_x_o_x_____o_|1.88%|6.65%
1047.75|~275O|____________________________________x___x_o_x_o_x_______|2.13%|6.37%
1045.00|~3O25|____________________________________x_o_x_o___o_________|2.39%|6.09%
1042.25|~33OO|____________________________________x_o_x_______________|2.65%|5.81%
1039.50|~3575|____________________________________x_o_________________|2.9%|5.53%
1036.75|~385O|____________________________________x___________________|3.16%|5.25%
1034.00|~4125|____________________________________x___________________|3.42%|4.98%
1031.25|~44OO|____________________________________x___________________|3.67%|4.7%
1028.50|~4675|____________________________________x___________________|3.93%|4.42%
1025.75|~495O|____________________________________x___________________|4.19%|4.14%
1023.00|~5225|x___________________________________x___________________|4.44%|3.86%
1020.25|~55OO|x_o_________________________________x___________________|4.7%|3.58%
1017.50|~5775|x_o_x___x___x___x___________________x___________________|4.96%|3.3%
1014.75|~6O5O|x_o_x_o_x_o_x_o_x_o_________________x___________________|5.21%|3.02%
1012.00|~6325|x_o_x_o_x_o_x_o_x_o_________________x___________________|5.47%|2.74%
1009.25|~66OO|x_o___o_x_o_x_o_x_o_____________x___x___________________|5.73%|2.46%
1006.50|~6875|x_____o_x_o___o___o_____________x_o_x___________________|5.99%|2.18%
1003.75|~715O|______o_x_________o_________x___x_o_x___________________|6.24%|1.9%
1001.00|~7425|______o_x_________o_________x_o_x_o_x___________________|6.5%|1.63%
998.25|~77OO||______o___________o_________x_o_x_o_x___________________|6.76%|1.35%
995.50|~7975||__________________o_x___x___x_o___o_x___________________|7.01%|1.07%
992.75|~825O||__________________o_x_o_x_o_x_____o_x___________________|7.27%|0.79%
990.00|~8525||__________________o_x_o_x_o_x_____o_x___________________|7.53%|0.51%
987.25|~88OO||__________________o___o___o_______o_____________________|7.78%|0.23%
984.50|~9O75||________________________________________________________|8.04%|-0.05%
Column|~935O||7_5_3_7_7_4_4_4_4_113_3_3_3_6_3_5_8_223_6_4_5_5_8_4_5_7_|
Count