Connected Money Will Reposition As OPM Does the Heavy Lifting

While the US and its monetary supports continue whistling past the graveyard in regards to the U.S. dollar (US Dollar Seen Rising In 2011 After 2010) their headline rhetoric continues to obscure reality.

The upside breach of the short-term downtrend in WA (see chart below) implies a resumption of the downtrend. Connected money, done beating the grass to startle the snakes - particularily the impressionable retail snakes, will begin repositioning as other people's money (OPM) does the heavy lifting during the markdown phase.

U.S. Dollar Index and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest


Retail money, heavily influenced by the constant grass beating of the media despite the obvious trend, finds itself on the wrong side of the trade, again!

U.S. Dollar Index and the NonreportableTraders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest


There are no coincidences in this business.

Headline: Gold Rises to Record Closing Price on Haven Demand, Sovereign-Debt Concern

“Gold has done so well this year because government activity indicates record deficits, low interest rates and an obvious lack of fiscal discipline,” said Tom Winmill, who manages the Midas Fund in New York. “The U.S. monetary policy will lead to a devaluation in the dollar, and all eyes are focused on the next default in the European community.”

Source: bloomberg.com