The continued strengthening of the US dollar despite worsening US jobs and manufacturing activity, and broadening evidence of a sluggish China results from market realization that the Fed's shortened and sterilized QE (Operation Twist) deployed until year-end will be inadequate in addressing the unavoidable deterioration in global activity. As long as the presence of Operation Twist prevents any new QE program, equities rebounds should remain contained, commodities to probe further downside (led by oil until grains turnaround) -- all alongside a rising USD. Throughout, gold and silver compete for which is the preferred dead-cat bounce.
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We have seen how Nasdaq100 peaked at the 19% extension from its 200-day moving average, before tumbling 6%. The 19% pattern was referred to in this video. The market will likely hold above the 28000 support--underlined by the May 6 gap-- and capped by the 29700 resistance, highlighted by the May 26 Gap. More details to members of the WhatsApp Bdcst Group.
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Latest Hot-Chart - Jun 02
Gold Not in a Hurry
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