The US Dollar Extends its Middle Finger

 As strange as it may seem to gold bulls and the anti-dollar brigade, there is the possibility we just got one big, "SCREW YOU!" from the US Dollar.

 It's too early to tell, really, as this isn't the first time the dollar has confronted us with an ostentatious display of force over the past thirty months. Still, it may be a good time for bulls to fall back, regroup, and dig some trenches.

 Volatility bombs will surely fly in the coming months.

 Those fortunate enough to have sat out during the "trading wars" from three years ago are going to get a lesson in patience and perseverance.  

Always perform your own due diligence. These are only my opinions.

GDX

 The pattern posted for the GDX on September 6th remains valid, though anyone continuing to hold should be cognizant of what's been happening with the US dollar and the adverse effects this could have not only on the overall strength of the stock market, but also gold stocks. The GDX has risen substantially from the lows it printed in early August and it may not be a bad idea to lock in some profits.

 The GDX continues to out-perform the markets-at-large; nevertheless, the GDX can still look great against the S&P 500 even if both fall further from here. All that's required is that the GDX falls less. That may be a moral victory, but it won't be a financially profitable decision if such an event takes place.

Always perform your own due diligence. These are only my opinions.

The S&P 500

 The S&P Futures managed to rebound slightly after spending the majority of the day on a steep downward trajectory. The reversal did manage to set up a bullish impulse leg on the five minute chart, but with the way the markets are trading (volatility courtesy of your friendly neighbourhood HFT programmers) anything is possible. 

 Aside from a reversal at the pattern's midpoint on the five minute chart, a trend line from the August 9th lows on both the SPY and SPX also provided some timely support.

 The Spiders will need more than a bullish impulse leg on the five minute chart to regain positive momentum. The daily chart is threatening the midpoint on the daily pattern ... still well above the $111.25 outlined as "P," but coupled with a bearish flag, the bulls have a lot of work ahead of them to get the S&P 500 back on track. Any serious breach of the midpoint will likely be followed by another wave of selling.

Always perform your own due diligence. These are only my opinions.

Copper

 Copper is weakening and close to breaking down outside a bearish flag.

 While gold managed to break well above an upper trend line, copper failed at that point and is once again making its way back to the lower line of a bearish wedge.



Always perform your own due diligence. These are only my opinions.

Crashing Wall Street's Party

 Every now and again world events transpire (call it what you will) that send most methods of technical analysis back to the drawing board.

 
 How does the US Dollar rise over a two day period when the markets have risen? This generally gets catagorized into the TA's many caveats as the good old "exception-to-the-rule" clause ... or as we like to say:

 
 Always perform your own due diligence.

 
 We now live in a world where bad news is good and good news is bad. The spin doctors (something we commoner day traders are forced to deal with on an almost daily basis) have seen to it with each and every shift in the market place.

 Yesterday, for example, one might have thought the markets were finally (finally!) on their descending journey to hell, especially when considering the gap down "the boyz" magically performed Monday evening on the futures markets. The bulls who trade on margin may have been scared out of their collective drawers yesterday morning and covered, only to find there was a "do over" in progress as the day wore on.

 Alternatively, those bears looking to climb aboard the "short-the-market" train were handed a similar result and the bottom line was this:

 Wall Street 10, Traders 0.

 It was a route! The Boyz of Wall Street, fully equipped with their emotionless, algorythm trading programs (not to forget a little insider help from the powers-that-be ...... who are we kidding?) saw to that.

 Well, kids ...... chalk it up to, "Takin' care of business."

 We may not be invited to Wall Street's disgustingly lavish events, but we can always crash their parties.





 Always perform your own due diligence. These are only my opinions.

GDX September 6th

 The GDX slightly surpassed its midpoint on Friday (yellow coordinates). It could mark a potential turning point (reversal), though it remains healthy with two reachable targets. The overnight stock market futures had a fairly significant gap down to start the week's first session and it remains to be seen how this will affect gold stocks.

 Physical gold hit a new high in the overnight session and then tumbled close to $60 before recovering and is trading slightly higher than Friday's close as of 6:11 am EST.

Always perform your own due diligence. These are only my opinions.

Gold, Gold Stocks and the S&P500

Always perform your own due diligence. These are only my opinions.