Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

US Dollar on plan, attended by the Gold/Silver ratio

Commodities / Gold and Silver 2021 Oct 04, 2021 - 09:44 PM GMT

By: Gary_Tanashian

Commodities

US dollar (DXY) has activated its Inverted H&S, Gold/Silver maintains its uptrend, watch silver going foward…

I do not make predictions because I do not pretend to be a guru.* But NFTRH has been tracking what has been an uptrend in the US dollar for all of 2021, keeping us well aware of the potentials being realized from late summer into the fall. A higher low was made in May and now a higher high, completing an Inverted Head & Shoulders pattern that we’ve been projecting since USD put in the theoretical right side shoulder last spring.

Until recently it was a projection. Now it is active after testing the (dashed) neckline, holding the (blue) 50 day average and busting to a new high for the cycle. Simple, no predictions but a heck of a lot of attention and respect for the process.


You can see the three targets we’ve had laid out for the world’s reserve currency, which has logically caused market stress of late. It’s as simple as ‘you live (pump markets) by devaluing the currency, you die (markets correct) when it rebels. Now if the rebellion does not become something more than moderate and should end at target #1, we’ll probably go back to our regularly scheduled programming of pervasive inflation problems on the macro.

As you can see, the three targets are Fibonacci retrace levels. All doable depending on how aggressively risk goes off and man and machine seek liquidity (as opposed to market speculation) in the near-term. Of note, the pattern itself has a theoretical measured target of 97. Again, not a prediction but now that the pattern is active, a viable objective.

And speaking of liquidity, the issue is compounded when USD’s fellow Horseman (of the Apocalypse) is riding along side.

The Gold/Silver ratio (GSR) has been in an uptrend of its own in 2021. When they ride together the implication is a weakening liquidity spigot for the markets. The rallies got going as we projected a cool down in the inflation trades back in the spring and to this moment they persist. Silver has more cyclical and inflation-sensitive characteristics than gold and hence, the interplay between the two is an early warning system about the forward state of the macro from an inflationary/deflationary standpoint and all points in between (hello Goldilocks).

Gold/Silver rising means market liquidity pressure. Silver/Gold rising means cyclical inflationary pressure rising. The process has been in play for months now and it may be culminating, with the next phase of inflation at the ready to morph Stagflationary. But until USD and GSR abort their uptrends the global macro is not out of the woods.

It’s a classic play, here in spooky season (September into October-November) to see the herds scatter due to fears of liquidity loss. But then comes what’s next, and it will not be what the herds think in the short-term. They’ll be too busy doing what they think is right, which is rushing for safety; rushing for liquidity; rushing for US dollars (the better part of a year after the rally actually began)! But the herd is the herd for a reason, eh?

As a hint, watch silver. We have our downside targets amid what is becoming a positive contrary sentiment (and CoT) backdrop for gold’s wild little brother. Nothing is predictable, but it sure is manageable and thus far that management is guiding us correctly. Why, even the Fed is playing ball in its newly donned hawk suit. At pivotal times in markets it pays to watch your assumptions and to think ahead. For example, as pertains to the Fed (and Yellen in the side car)…

* Plenty of people pretend to be gurus, but there actually is no such thing. There are hard and forthright workers and there are big marketing machines (cough cough, Casey… cough cough, Dent… cough cough, Stansberry… cough, cough, a multitude of others…).

Now offering a 2 week free trial to the NFTRH Premium service with no obligation whatsoever. Sign up by PayPal, enjoy 2 free weeks of on-point market management and if it is not for you, cancel at any time with no further obligation. When you find that it is for you, stay on for as long as you like and let’s manage and take advantage in a cold and rational way as we head toward 2022 and its new macro challenges. 1st time subscribers only please.

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter ;@NFTRHgt.

By Gary Tanashian

http://biiwii.com

© 2021 Copyright  Gary Tanashian - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Gary Tanashian Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in