Everything is lining up to what was speculated (I think) in one of the email updates last week and in this week's NFTRH. Namely, the symmetrical triangles on Dow & SPX appear to be breaking down into a possible capitulation. Same goes for gold stocks, minus the sym-tri's. HUI has not broken Friday's lows but certainly looks like it wants to do so.
Unfortunately, it looks like too many people are trying to micro manage a USD top and as Jack Chan mentioned, there is apparently still too much bearishness on the USD. I have heard some folks talking as if a cataclysmic decline in Uncle Buck is imminent. The USD mania has the look of something that can continue to frustrate top callers for a while yet. My ultimate target for USD is around 90, but that included a pullback before approaching that level. If it makes it all the way in one manic leg, well, that is not healthy for our dear old uncle. Mania never is. I am becoming more bearish the dollar than I have been in a long while, but again as mentioned previously, calling a blow off top is impossible.
If it happens, we could get the capitulations in many markets that have thus far remained elusive, hard as that is to believe. Gold looks vulnerable as well to our target of 650 but a target is just a neatly drawn line on a chart. This is Uncle Buck vs. the world and he is royally pissed.
I will probably send out an update in the morning. Right now I am sitting outside my daughter's karate class and I think I'll take the time to go do some browsing around on the day's events.
