My regular column will resume next week as I just got back from the Las Vegas Traders Expo. For the first time, I had a standing room only crowd. Thank you to the folks at ICE Futures for having me. Anyway, I just wanted to briefly show you what is going on. If a picture tells a thousand words, this one sums it up. By the way, the real high on that chart should be 76.50.
Believe it or not, the dollar is in an uptrend on an hourly basis. We’ve been there before so the test of the rising line is going to be one of the most important technical events of the week. Monday is also the 260th trading day off pivot high of a year ago. My concern is whether we put in an inversion this week.
The next thing I want to discuss is the new ‘asset bubble’ forming in the gold market. Fed Chairman Ben Bernanke tells us there is no bubble. That has me a little concerned but there are enough people who think there is a bubble. Think back to all of the bubbles of the past 10 years. When we were in the midst of a bubble, nobody asked whether we were in a bubble or not. There is a denial factor that is not present right now if you don’t work for the Fed. My charts indicate we are very close to a bubble but there is a point on the chart where the accelerator will hit and prices will go beyond the point of no return. We are not there yet.
I hope you have a great holiday. Check in next week and I’ll have a lot more on my mind.
