The Dollar is on day 9 of it's new daily cycle. I believe it peaked on day 8. Since that high, we've fallen out of the ascending wedge as I noted on the last post was forming. Once price broke, it fell below $80, and has been unable to regain it this evening. This is a very bearish scenario and anymore selling pressure should get the ball rolling. Over the past 35 sessions, the dollar has closed over $80 only 3 times.
Here's a longer term look at the dollar. You can see the long term channel that we're trading in. After kissing the top of it just a few weeks ago, we're now destined to have a date with the lower end of the channel. This is in the $74 range. The head shoulders is beginning to take shape. The 50MA has crossed over the 200MA. Every instance of this happening in the past has been followed through with several months of selling.
Miners may have a very big year coming up. Here's a look at the $HUI. Take note of the MA crosses. Every single time that we've had a 50>200 MA cross, we've seen tremendous gains. Well, that has just occurred again. That is why I am long GDX.
Metals were largely unchanged on the day. I have a feeling this is coming to a very abrupt ending very soon.
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