The strength in the US Dollar, an illusion revealed by the global strength in gold, will disappear as fast as it materialized from media-driven hype. "Connected" players are repositioning against the hype into strength right now. The duration of operation Euro take down depends on the quantity of contracts or amount of 'fuel' controlled by the weak hands. The secular trends of up gold, stocks, euro, and down U.S. dollar will resume when this fuel is exhausted.
Turn off the TV and follow the money. COT figures, due later today, will reveal the trail of bread crumbs to follow.
Regards,
Eric
Eric -
Given the current and potential bailouts Roubini is referring to, is it probable we see a further period of pseudo-strength in the USD accompanied by weakness in gold and shares? IOW - weakness until capital finishes its "Euro Play", as you say.
I know Jim commented on relative strength in gold a few days ago, and it's still at $1365 as I write this. So I wonder if the appetite for movement from USD to Gold will be enough to sustain it through this period.
-Scott
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