My Home     About Me

Good Morning: The chart below says it all. Right now we are in a support level around 85, but should this begin to break down, then the numbers mentioned yesterday, being 83, 80 and 75 would more likely become the next waypoints on the way down and there might also be some potential for this downtrend to accelerate sharply lower... As we said the other day, there are numerous warnings about the US Dollar all over the net and have been for some time and it would appear these warnings are well founded, because the US cannot sustain itself in the manner it has ad infinitum and as we have said here before, there's no guaranteed or divine right that the almighty Dollar should remain strong just because it has been the Global currency of commerce thus far.   The potential for the Dollar to unravel cannot be underestimated and whilst it is unthinkable that the US Dollar could go the same way that the Wiemar Republic went with perhaps the worst case of hyperinflation in history, or the way of the Zimbabewan Dollar went or Mexico's Peso back in 1995, anything is possible and therefore one should keep a very open mind. We have already outlined the possibility of the Dollar dropping to as low as 45 in an extreme case by 2009, when we believe a major cyclical low will be established and while that is the same approximately as what happened to the Australian and Canadian Dollars over the past 20 years, such a fate could clearly await the US Dollar in much the same way. While it might be painful to endure, it eventually might right a lot of wrongs economically and would help kickstart another housing boom most likely and sometime in the coming decade the Dollar could rebound dramatically, just as resourced based currencies of Canada and Australia have already done.    Probably one of the more surest and safest way to play this possible scenario and protect and enhance one's assets is through Gold and Silver, as being that they are by most historical measures already extremely undervalued today, any kind of sustained or panic decline in the US Dollar could accentuate the valuation of Gold, Silver and a host of other hard assets that will likely gain tremendously in the future.

On top of the economic consequences of decades of worsening economic statistics for the US Trade Deficit in particular along with the increasing amounts of Dollars that have to be shipped overseas to satiate America's thirst for Oil, the situation in the Middle East that we outlined yesterday, is more than likely to contribute to the potential for Gold to become a safe haven in times of extreme conflict potential.

A breakdown below 80 could potentially set Gold on a course towards $1000, as would $100 Oil prices, but we also believe that just as did happen in 1980, the potential Deja Vu exists and then some, in especially the case of Silver, wherein Silver prices could once again soar exponentially and this time, like Gold could not only eclipse its old highs of $50, but at as stretch could soar to $100 plus on shortages. As we have recounted many times, the World is running out of Gold, Silver and Copper among other resources and the greatest shortages could still occur over the coming years ahead, before major new mine projects can come on line, alleviating what could be higher prices...

Technical chart patterns   support/resistance levels   S&P 500 chart pattern   ETFs (exchange traded funds)   Deron Wagner   emini's S&P 500   earnings   economic data   Biotech HOLDR (BBH)   Emini's Nas 100   Short selling ETFs   exchange traded funds   sector rotation   etfs   corn futures   selling options   commodities   mcio   minecore   sapphire