Uncle Buck, please go into that little room, get undressed and climb up on the table. It is time for an examination. This is just a routine check up as we will check your pulse rate, blood pressure, breathing and of course poke and probe around a little bit. Don't worry, we will be gentle.The weekly USD chart shows the sharp uptrend that was broken down impulsively in December has been re surmounted. But this occurs along with down triggered MACD and TRIX (from very over bought) and a pathetic looking ROC divergence. Still, the dollar caught many off guard and while I had targeted mid-80's for a rebound, it is pressing higher still. For our intermediate term dollar bearish scenario to play out, 88 needs to hold on the re-test.
Contrary to the fear of a strong dollar however, I once again note the 'gold ratios', two of which are represented on this chart in the 1st two lower panels. Isn't it beautiful how gold in relation to positively correlated things keeps protecting peoples' value while at the same time ramping gold mining companies' fundamentals? Strong USD = lots of misperceptions and fear, but it should not make gold stock holders fearful in and of itself. Of course, markets being the sum of the Investoriat's greed, fear and actions, that is not what generally happens and the miners will likely remain under pressure until the dollar tops and their fundamentals actually take a down tick.
Okay Uncle Buck, you can step down off the table and get dressed. Everything looks fine with the exception of one minor detail; your pulse rate indicates you are dead.
