Bretton Woods 2.0
Disclaimer: I have no idea what I’m talking about! You’re on your own. Don’t try this at home.
Assumptions:
- Gold is Money
- Gold price is manipulated by the Central Banks Target Price (Bretton Woods 2.0).
- Markets get Overbought and Oversold.
- The value of Gold can change as currencies depreciate or inflate (Bretton Woods 2.0).
- All the Central Banks adjust economic policy to achieve there common goal (Bretton Woods 2.0)
- Spot Gold is a function of the Target price of the Central Banks and the US Dollar Index ($USD).
- During Gold Bull Markets the Target Price is adjusted by the Central Banks.
- There are countries that want to disrupt the status quo………
Determine the Target Price and the direction of the $USD anticipate the value of Gold. In the past when the Target Price moves it has moved quick. If you got it right you’re a hero get it wrong lose your a$$.
During blowoff tops this ratio has been wildly overbought ie. Gold = Target Price/($USD/100).
Could blowoff tops be considered FBO’s?
I have no idea when the next Bull or Bear may occur. The Blue line (Target Price) is subject to your interpretation. The Blue line is just a best fit scenario of previous price action. Will the future echo the past or will it be disrupted?
I’m trading very short term here……….Due your own due diligence!