Loading ...Gold and the BOJ
Gold has broken the short term Downtrend largely because….
The Dollar is Falling hard vs the Yen
Trader Dan is Shocked that the Bank of Japan has Not yet intervened verbally !
He shares his experience with currency traders “pushing” the issue and getting badly burned
Japan Needs a lower Yen…it is the cornerstone of their Economic “Plan”
Where is the BOJ ?
His concern is they will come in with bazookas and intervene
However This is the yen Carry Trade Unwind and Dan says it is so large that it could overwhelm the BOJ
if they come in too soon…then all hell breaks loose as they lose control
Looks like on this chart the cross wants to go to 100
IF the BOJ intervenes …and it could be imminent….This Pattern in Gold could still prove to be a H and S Top
Never easy !
sheesh
Shanghai Accord from what i have been reading. Also, and I hate to sound like a goldbug, but, perhaps its a true loss of faith in CBs. Look what happened when the BOJ went further negative and threw the kitchen sink in last time. Yen did an about face. Shortly thereafter Draghi fired his bazooka and same thing happened. Euro blasted higher.
Good Point
I realize the Shang. Acc. is a theory but its interesting to see what has happened over the last month+.
Read Rickards article.
http://dailyreckoning.com/the-dollar-has-been-shanghaied/
And today, viola:
https://twitter.com/TomOrlik/status/718006168686305280
Everyone was expecting this China devaluation shock. Spock was right, weak dollar policy. What benefit BOJ gets from all this I have no idea.
I made this dollar chart based on Armstrongs 8.6 yr cycles. The “grey areas” show similar points in the cycle and a much lower dollar price could easily happen over the next year while keeping its bullish cycle perfectly intact:
http://stockcharts.com/h-sc/ui?s=%24USD&p=M&st=1980-06-02&en=today&id=p36211476708&a=446009240
Notice the gold bear/bull trend cycles in red/green despite the dollar cycles.
Gary This is Important Information…Excellent
I don’t have a twitter account
Who is Tom Orlik and what is he saying today ?
He posted a chart and said: “China FX reserves rise in March”.
I believe Rickards is privy to some serious inside info.
Great stuff Gary
Please keep an eye on all this and report here at goldtent .
That Rickards Article is spellbinding .
Makes a whole lot of sense…China was likely going to have to depeg from the dollar if it kept rising
Yes one wonders what’s in it for Japan.
I live in an area who’s economic life depends on Honda .
Sure, will post if any change. I highly recommend twitter. Helping me learn markets exponentially. I save my stream via a bookmark. None of the tweets go to my phone. You don’t have to do that.
Pretty sure the benefits are for CBs members positions. If CBs actually gave a shit about their fellow countrymen they wouldnt have blown the bubbles to begin with. Stack the deck and win every hand.
I’m still trying to figure this one out.
Why are the relationships below wrong (not making an argument here – I’d really like to know)
If the dollar explodes higher or Fed rate hike = worse for US stock earns = SM’s crater = PM’s up (run to safe haven) right? – this flies in the face of the ‘normal’ USD up, PM’s down observation. Yes, dollar may go up but wouldn’t PM’s go up exponentially higher?
On the other hand if dollar is suppressed further = inflation rises = commodity economies benefit = rising pressure on PM’s. Can PM’s going up be win-win at this point? Seriously?
It seems CB’s are truely backed into a corner here – they just need to pick the lease panic inducing option. BTW please check out this video – very valid arguments IMO.
https://goldsilver.com/video/what-is-the-yield-curve-suggesting-for-markets-mike-maloney/
The scariest part of this video is where he talks about political ‘solutions’ which will likely involve removal of today’s freedoms.
https://www.youtube.com/watch?v=QqOtSokKRxs