Jeb Handwerger's Contributions

Consolidation Or Trend Reversal In The U.S Dollar and Gold?

An important inverse inter-market relationship is continuing between the U.S. Dollar and Gold. They have both broken trendlines simultaneously and are threatening a counter trend move. Other than yesterday’s spike on a conflict in Korea, the dollar and gold have moved inversely and one appears to be bottoming while gold threatens to make a topping pattern.

Rising Yields Are A Concern For Precious Metals Investors

Every precious metals investor should be concerned about China raising its rates and rising yields. Rising rates in one of the fastest growing economies will affect precious metals investors. Changes in the rates affect stock prices. China is leading the world and we can see the fears are profound as sell offs this week were much stronger that any of the relief rallies. If China’s market corrects then the commodity market which was fueling the equity market could experience a severe correction. It is a domino effect.

Price Volume Action Signals Counter Trend Move In U.S. Dollar and Gold

Price action that comes after a major announcement reveals a lot about underlying economic trends and the psychology of the market. Leading up to the election investors became enthusiastic on precious metals and commodities as QE2 was celebrated. Then the official announcement of QE2 caused the precious metals to gap higher as euphoria of the Fed’s move were celebrated.

Dollar Bounces Off Important Support as Post QE2 Sets In

This week we are reaching price levels in the dollar that have only been touched 3 major times in the last 3 years. After touching this level the dollar has bounced higher in reaction to major deflationary forces.

Fed Creates Parabolic Move in Gold and Silver

After trading through both bull and bear markets and witnessing hysterias and panics I have learned that whatever method you use to buy stocks, you must have a discipline to sell. When I buy I look for support levels and oversold conditions so that a reversal could bring about a major gain and the downside risk is calculated. As I wrote in my buy signal in gold in late July, the conditions were ideal for a major move to the upside. Now the conditions are reaching the extreme opposite, it is overbought and surpassing measured moves and upper resistance lines which mark prior turning points.

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