Well that didn’t take long. The USD sliced right through 80 this morning and has since settled nicely right at that even number. For now an ideal set up is a supportive move in the USD, stocks decline to 1,120 – 1,100, and Gold retreats a bit to, say 1,270 or so.
This, of course, is what I would love to see. But Mr. Market knows that’s what we all want to see, so I’d be surprised if that is what actually happens. Nonetheless, we are at key monthly resistance on Gold now, with declining MACD strength and the possibility is there for a set up as long as Gold and S&Ps retreat a smidge here.
I am still long the QID as a hedge against my long stock positions.
Stay safe, Happy Harvest and trade the extremes!