Archived IMT (2011.01.24)

GOLD FELL BELOW its 55 and 100-day moving averages for the first time since July. The next Chinese rate hike (hike in interest rates and not just reserve requirements) is likely to occur on the Chinese New Year (Feb 3rd). The metal remains vulnerable to breaching below $1290/oz, which would denote a confirmed a break of the Oct 2008 trendline resistance. Key subsequent downside targets stand at $1,238 (55 WMA) and $1,125 (100 WMA). Only a breach below $1,100 would imply serious reconsideration of the secular bull market. AUSSIE PPI CAME IN weaker than expected (as warned at Sundays Workshop),which should means Wednesdays CPI will also be weaker than exp and cause fresh downside for the currency. AUDUSD managed to recover on the heels of renewed USD selling butselling the bounce remains the order of the day for AUDUSD as long as no close appears above 1.0040. THANK YOU who made it to the yesterday's Workshop. Great to see travelling from Tokyo, Moscow & Montreal. Those who want me to mail them an updated version of the yield spread charts or anoteh rother sldies, please feel freel to ask.