FXY Part 2

I would take half my position off, nearly at target. That was quick. I didnt take the trade, I know a few of you did and thanks for the kind emails.

FXY

Was asked about the technicals on FXY. Looks toppy and fundamentally over valued I believe. Japans economy is hurting.

EUR/JPY

Watch this cross trade as it moves lower so has the market and it has been this way for the past year and a half.

GOLD

GLD is the ETF that tracks gold. This is one position that you can be long and be comfortable for the next year the trend is going to be up, it will back and fill along the way but the trend is your friend here. Let the trend do the heavy lifting.
With all currencys likely to be under pressure this is even more incentive for GLD to move higher. As governments, institutions will likely put fresh capital to work in this precious metal and avoid currencys. Actually it was reported that Russia started buying gold as it had been promising. Its not that the dollar is strong, its all other currencys are very weak and will continue to be so. The dollar rally will eventually run its course and make new lows in the future.
I will be buying GLD on a decent pullback to support. As I believe it will be higher in 6 months time and even higher in 12 months time.

PROFITS

Took some profits on AMT. Still very short though.

Dollar vs DOW

Take a look at the chart, it shows performance of U.S. Dollar index futures vs DOW in the bottom pane. The chart itself is of the dollar index. As dollar declines market moved up and as the dollar has recently showed strength the market has moved down. Notice the cross over in the bottom pane. Here is your leading indicator for stock market direction.

Quote

What happened to making mistakes and paying for them, so next time you do not repeat the mistake. I believe as long as I learn I will make mistakes. Just does not seem anyone in D.C. has had to go through the trials and tribulations to learn these lessons. I will leave you with a quote that hits home to me regarding the current situation.

Ecclesiastes 3:1-8:

To everything there is a season,
a time for every purpose under the sun.
A time to be born and a time to die;
a time to plant and a time to pluck up that which is planted;
a time to kill and a time to heal ...
a time to weep and a time to laugh;
a time to mourn and a time to dance ...
a time to embrace and a time to refrain from embracing;
a time to lose and a time to seek;
a time to rend and a time to sew;
a time to keep silent and a time to speak;
a time to love and a time to hate;
a time for war and a time for peace.

Just Saying

We can get a Dow Theory buy signal if the Dow and Transportation index can both rally and close above their Jan 6 closing prices. If that were to happen I would anticipate a new bull market is in the making 6-9 months from that signal, when ever that did occur.
Just saying something to be looking for in the future.