Dollar

This does not look good for King Dollar. This says Higher Oil,Stocks,Gold, interest rates.

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Thoughts from the Vortex

Morning Gang,

Very interesting action over the holiday weekend. The ES (SPX futures)skyrocketed on Sunday and Monday with all the Asian Markets. Triggered by Gold getting over $1000. This morning we are almost back to the week ago plunge. This backtest may be the graceful exit the market gives...or a large spike higher as we are now over the 1080 degree mark again. Today is giving a very good risk reward for participants to short with defined stops. The cycles of time begin in ernest Sept 9th and play out thru Oct.

Are we in Deflation? Robert Prechter basis his large pullback to come off this theory...What is gold saying about that. China today even said we are printing too much money and they are buying Gold and diversifying their reserves..

Are we going into inflationary times... all indicators say yes.

Or are we going into a combination of the two? As we unwind the debt crisis of the US homeowner and coming commercial real estate refinance season, will we see inflation move to cetain assets (financial,commodities,precious metals) and deflation in real estate. That is my hunch.

Cycles should start to exert here for a trend reversal if we are to get a meaningful pullback.


The Dow is on a nice 1,2,3 pullback on the daily chart and still within the LROD down on 9/1 we will see.

Thoughts from the Vortex

Morning Gang

Well it seems the cycles are starting to play out. We have had a 90 degree overshoot of the 1012 mark. 1012 is 3 revolutions of 360 degrees up from the 666 low. The market often plays in 3s and 7s. As my last post talked about China and how its influence may push us around. The dollar is building a sneaky pattern here. If King dollar gets above 79.50 on the dx then the US stock markets may be in for the extended pullback.

Mr. Market has done a good job of holding both sides in the cautious camp. Surprise has always been to the upside. May be in for a big surprise if the dip buyers don't show up this time around.

Still looking for that last fear trade.

Signs all around....Government is upping margin req on leveraged ETFs and many firms are not allowing their sale. "The hand" may well be at work.

Yesterday GS printed a LROD (large range outside day) which engulfed 8 trading days... will we see follow thru. GS has also traced a mini head and shoulders patter with a second right shoulder (bearish). If Gs is also at the begining of tracing out a bigger head and shoulders, the head has formed and a pullback in the area of 135/140 looks in order.

Hit em Hard