My OperaStocks Fall And Then Rise Some After PCE Inflation Report Was Analyzed ... The Dollar Barely Rises ... Gold Falls Lower With Oil
Tuesday, August 5, 2008 6:18:30 AM
Introduction
Peak Dollar and Peak Currencies have been reached.
Gold is rising as the defacto world currency.
Wealth will now be garnered and maintained by investing in gold.
The PCE Inflation Report Came In Worse Than Expected
Martin Crutsinger, of the Associated Press, reports in USA Today article, June Consumer Spending Down As Inflation Gauge Runs Hot, that after adjusting for inflation, fell in June as shoppers were hit with the biggest increase in prices in nearly three decades. The Commerce Department reported that consumer spending dipped 0.2% in June, after accounting for the effects of higher prices, the poorest showing since a similar drop in February. And today's report shows that inflation, measured by the core Personal Consumption Expenditure, PCE, index, shows that higher prices reflected a big surge in gasoline costs and helped to drive an inflation gauge tied to consumer spending up 0.8% in June, the biggest increase since a 1% rise in February 1981. The index rose 4.1% on a year-over-year basis in June — highest since a matching 4.1% in May 1991 and up from 3.5% in May. The core PCE index, which excludes food and energy items, was up 2.3% in June, the highest since a matching rate last December, after rising 2.2% in May.
Stocks Fell In Early Trading On The Inflation Report But Then Recovered Some...... The Dollar Rose And Gold Fell Lower With Oil As Middle East Tensions Subsided
Stocks were off sharply on the PCE report; but then recovered later in the days trading. The inflation gauge report was a downer, coming just the day before the Fed meeting: it dims the hopes of bankers who would like to see the Fed lower the central bank interest rate later this year; that hope was diminished as the Fed may now be more reluctant to lower their rate to stimulate growth if inflation is rearing its head.
Banks, KBE, rose 0.7% to resistance at 33.33.
The financial sector, IYF, rose to 50 day moving average. The consolidation on falling volume relates that the carry traders who sold oil back on July 14, 2008 to go long the financial sector, will be departing their most recent acquisitions soon and investing somewhere else, perhaps going long gold, GLD, or going short EUR/JPY in their forex accounts.
The commodity stocks were off sharply as middle east tensions were reduced that the EU US world government would be seeking economic sanctions rather than taking military actions:
Coal Producers, KOL, -9%
Energy Sevices, OIH, -6%
Metal Manufacturers, XME, -7%
Steel Manufacturers, SLX, -5%
Agriculture, MOO, -5%
Oil Producers, XLE, -4%
Brazil, EWZ -4%
BRICS, EEB, -4%
HUI Indexed Precious Metal Mining, GDX, -4%
Design Build Construct, PKB -3%
Japanese Small Caps, JSC, -3%
Stock Brokers, IAI, -3%
Mortgage REITS, REM -3%
China, FXI -3%
Russell 2000, IWO, -2%
Oil, USO, fell 4% as middle east tensions quickly melted as the EU US western world government sought redress and relief through the United Nations rather than through a military strike over the threat to global security posed by Iran's nuclear ambitions as Matthew Lee of the Associated Press reports in Major Powers Threaten New Sanctions on Iran.
Natural Gas, GAZ -7%
Oil, USO, -4%
Commodities, RJI -4%
Silver, SLV, -3%
Gold, GLD, -2%
The chart of the SPX, $SPX, the S&P 500 large caps shows three black crows to the edge of a head and shoulders pattern.
The chart of the Russell 2000 Value stocks, IWO, being more financially sensitive, are more market attuned than the Russell 2000 Growth stocks, IWN: the Russell 2000 Value shares, IWO, are the canary in stock market coal mine warning the investor to get out and get out now; note today's sharp fall lower and the RSI turning over.
The recently high flying biotechnology ETF, XBI, turned down; as did soaring LTC Properties, LTC a leading assisted living care REIT.
In my view, inflation takes the back seat to increasing political tension and stock and bond disinvestment from financial stocks, as the driving force for investing in gold.
In a world of increasing political tension, stock and bond disinvestment due to risk aversion to the level two and level three assets at banks, KBE, and investment bankers, KCE, and rising product inflation, investors are buying gold.
Your blog host, the Resourceful Bear says: "Product price inflation in countries like Vietnam is a stock, bond, and currency killer and a gold thriller".
Many are of conviction that recession, ending of trade tarriffs and farm aid, and demand destruction, as seen in the above mentioned report that inflation adjusted consumer spending is falling, as well as the inflation reported July 19 by ActionForex in article Weekly Review and Outlook: Sharp Reversal in Yen as Investors' Sentiment Improved, and that oil prices are going lower, so they assert that product inflation will not be a future issue in the US and in Europe; and they suggest that central bank interest rates will be going down from 4.25% in Europe and down from 2.0% in the US.
I believe military conflicts will arise between many nations; and that a 'world war' will erupt between the EU US western world government and Iran, and that these factors will keep oil prices high and inflation over a long term outlook, is endemic.
Risk aversion subsided and the metrics of liquidity rose
The EUR/JPY, FXE:FXY, bounced up to 1.690 from 1.680, with the Euro, FXE, going higher and the Yen, FXY, going lower to former support.
Back on July, 21, 2008, the Euro, FXE, manifested a bearish engulfing candlestick and capitulated to increasing risk aversion; but today it rallied.
The Yen, FXY, in the process of having rallied and now falling lower, is now at the edge of a head and shoulders pattern, which suggests an eventual fall lower.
The EURO, FXE, and the Yen, FXY, are both in the process of getting knocked lower, meaning that they will both soon be headed lower, with the US Dollar, $USD, in a death spiral lower together. It's just that the US Dollar, $USD, is temporarily up in advance of the Fed meeting; it will be going lower, awesomely lower, soon.
The USD/JPY rose to 108.08 on a lower price of oil; this is near the recent high as seen here in the Yahoo Finance 5 day chart. After the Fed meeting tomorrow, investors will be buying the Yen and paying back their 0.5% Bank of Japan loans.
The Yahoo Finance 3 month chart of USD/JPY is now at the zenith edge of an ascending wedge pattern which began with the March 18, 2008, Federal Reserve assisted JP Morgan buyout of Bear Stearns and provision of TAF, TSLF and PDCF facilities.
The USD/JPY, and EUR/JPY, will be turning lower tomorrow or immediately after tomorrow's Federal Reserve announcement, which is expected to announce that interest rates are to held steady: this will cause disinvestment from stocks both worldwide and in the US.
Interest rates are rising and bonds are falling despite stocks falling lower: a run on the US Government bonds is underway.
Despite today's red hot inflation report, I expect a rising debate among 'forex house pundits' that the Federal Reserve will announce a lowering of the central bank interest rate below 2% to stimulate the economy as well as to provide liquidity to banks as their stocks sell off after the meeting.
Nevertheless, I expect the interest rate on the 30 Year US Treasury Bond, $TYX, to continue to rise due to the bond market place calling interest rates higher due to a number of factors:
1) a lack of confidence in the US Treasuries as more TAF assistance is provided, and as efforts take place to liquefy and capitalize the GSEs Freddie Mac, FRE, and Fannie Mae, FNM, as the stock market turns lower.
2) a rising likelihood that the rating agencies will downgrade mortgage backed securities or the bond guarantors Ambac, ABK, and MBIA, MBI, both of which were up today in front of the Fed meeting for tomorrow.
The chart of $TYX, shows interest to be in breakout: first on March 14, 2008, in response to the Fed provisions of TAF, and then again on July 14, 2008, in response to the GSE Rescue.
I not only see stocks and currencies falling lower, I see US Treasuries, TLT, and the zero coupon mutual bond fund, BTTRX, falling in value as well: The island reversal in BTTRX and today’s upturn in $TYX, document that a run on the US Treasury Bonds is now underway.
We have reached both Peak Dollar and Peak Currencies
The international currency ETF, DBV, rose today. It had been rising beginning with the TAF rally, but it of recent days is in the process of falling lower.
The recent fall in the international currency ETF, DBV, like the fall in EUR/JPY, shows that we have attained 'Peak Currencies'; and tomorrow after the Fed announcement, we will definitely have obtained 'Peak Dollar'.
Today's close of the US Dollar, $USD, only 0.01% higher, gives credence to the concept of Peak Dollar. It's antithesis, gold, $GOLD, closed 2.5% lower at $894, just above its previous break out at $890 and the prior at $870; both of these times the yen carry traders sold out of the BRICS, EEB, for gold. I expect that they will continue to do so, and the process at least sustain as well as increase the price of gold.
Currencies are dying as Elaine Meinel Supkis relates due to too much governmental red ink, and risk aversion to a number of issues: inflation, the level two and level three assets at banks, the securitization of the the GSEs by the Fed, demand destruction, and the diminishing of corporate profits.
Interest rate differential investing long the currencies and long the markets is history, it's now an investment way of a bygone era.
Gold is rising as the world currency and means of preserving wealth
We have transitioned into a new era of 'financial disinvestment and instability' and also into 'the age of state corporate rule'; both of which suggest the wisdom of investing in gold.
Gold will be rising as the defacto global currency, and as the means of garnering and accumulating wealth.
Investment Recommendation
In advanceof the Fed meeting tomorrow, the Proshares Bear Market ETF, SKF, which is 200% inverse of the financial sector started to rumble and roar on the launch pad.
With Mike Mish Sheldon providing 25 Good Reasons For Believing The Banking System To Be Unsound, there is reason to understand the rumble and roar.
Here is the chart of SKF Daily, and SKF Weekly.
It was on July 14, 2008, that the yen carry traders sold out of oil, USO, to go long the financial sector as the Rescue Rally of the GSEs, Fannie Mae, FRE, and Freddie Mac, FNM, started.
Now the yen carry traders are going to be selling out of their bank, KBE, and investment banker, KCE, Ambac, ABK, and MBIA, MBI, shares, as the Fed announces that interest rates are going to be held steady at 2%.
While short selling may garner gains, it cannot preserve wealth, as all one has is a portfolio that is constantly depreciating in value relative to gold.
The chart of the gold ETF, GLD, shows gold to be in not one but two rallies. The first began May, 1, 2008, when the institutional investors traded out of the high yield dividend paying stocks, PEY, and went with the yen carry traders to go long the CRB commodity futures and the commodity indexed ETFs and mutual funds such as RJI, USO, DBA, JJG, and GLD. The second rally began June 23, 2008 when the yen carry traders traded out of stocks for gold: it rose from 87.
I wrote just the other day that gold had formed a consolidation pennant; and suggested that it could fall lower before moving higher; and today that happened; gold, GLD, could easily fall lower to 87 before moving higher again.
It is even conceivable that it could fall below 86; but should it do so, there will always be an investment demand for gold, with gold being more valuable that any other form of wealth, as seen in the following ratios:
gold relative to stocks GLD:VTI
gold relative to commodities GLD:RJI and GLD:RJI Weekly
gold realative to oil GLD:USO
gold relative to currencies GLD:DBV Weekly
gold relative to Treasuries, GLD:TLT
gold relative to Utility stocks, GLD:VPU
I also favor gold because it is an "investment safe haven" in times of political and economic turmoil.
And, I have written a lot about multiple systemic risk potential events such as in the article Tax Exempt Mutual Fund Investors Could Suffer More Than Other Investors When The Coming Financial Breakdown Starts.
When the systemic risk event materializes, a financial emergency could turn into a greater political and economic emergency.
The EU US Western World Government Graduated It First Police Force Class in Garmisch Germany on July 31, 2008. The class prepared forty two military and civilian emergency management officials from 25 countries to address, prepare for and respond to catastrophic events. It took an all-hazards approach to the developing field of civil security which includes civil defense, homeland security and crisis management. For years, many nations lacked a formal framework for the concept of civil security; but now civilian military cooperation and international cooperation is the announced ethic and way of dealing with catastrophic events.
The trans-Atlantic partnership and trans-world leadership and means are now in place to deploy military peacekeeping forces anywhere in the European and North American Continent.
Such a deployment would certainly favor those invested in gold.
I recommend that one invest in gold at BullionVault.com and at GoldMoney.com and that one invest in the gold in GLD, SKF, RYWJX, and TBT, in a trust account and not a brokerage account.
I also recommend that one open a Forex currency trading account and go short EUR/JPY and short USD/JPY. The weekly chart of FXE:FXY shows the end of the age of investing long with 0.5% interest from the Bank of Japan; as disinvestment gets underway, fabulous wealth beyond which I am able to describe is coming to those who are short these two currency pairs in a forex account.
The EUR/JPY rose today to 168.05 as recorded in ActionForex.com article EUR/JPY Daily Outlook Aug 04 08. Given my investment maxim, this represented the short selling opportunity of a lifetime; the maxim is: "In a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength".
The gravestone doji in the EUR/JPY occurring at 168.12 resistance in FXwise's chart articleToday's Candlestick View : 5th August 2008, seen in this chart, says sell, sell, and sell.
And the USD/JPY at 108.22 resistance, seen in this chart, given the Federal Reserve meeting for tomorrow, says sell, sell, sell as well.
Here is a report that shows that investing when done from a technical analysis perspective often will result in behind the curve and often results in destruction to one's wealth.
Stock Markets Consolidating Ahead of Another Leg Higher
Suggested Reading
How to keep your investments safe
Peak Dollar and Peak Currencies have been reached.
Gold is rising as the defacto world currency.
Wealth will now be garnered and maintained by investing in gold.
The PCE Inflation Report Came In Worse Than Expected
Martin Crutsinger, of the Associated Press, reports in USA Today article, June Consumer Spending Down As Inflation Gauge Runs Hot, that after adjusting for inflation, fell in June as shoppers were hit with the biggest increase in prices in nearly three decades. The Commerce Department reported that consumer spending dipped 0.2% in June, after accounting for the effects of higher prices, the poorest showing since a similar drop in February. And today's report shows that inflation, measured by the core Personal Consumption Expenditure, PCE, index, shows that higher prices reflected a big surge in gasoline costs and helped to drive an inflation gauge tied to consumer spending up 0.8% in June, the biggest increase since a 1% rise in February 1981. The index rose 4.1% on a year-over-year basis in June — highest since a matching 4.1% in May 1991 and up from 3.5% in May. The core PCE index, which excludes food and energy items, was up 2.3% in June, the highest since a matching rate last December, after rising 2.2% in May.
Stocks Fell In Early Trading On The Inflation Report But Then Recovered Some...... The Dollar Rose And Gold Fell Lower With Oil As Middle East Tensions Subsided
Stocks were off sharply on the PCE report; but then recovered later in the days trading. The inflation gauge report was a downer, coming just the day before the Fed meeting: it dims the hopes of bankers who would like to see the Fed lower the central bank interest rate later this year; that hope was diminished as the Fed may now be more reluctant to lower their rate to stimulate growth if inflation is rearing its head.
Banks, KBE, rose 0.7% to resistance at 33.33.
The financial sector, IYF, rose to 50 day moving average. The consolidation on falling volume relates that the carry traders who sold oil back on July 14, 2008 to go long the financial sector, will be departing their most recent acquisitions soon and investing somewhere else, perhaps going long gold, GLD, or going short EUR/JPY in their forex accounts.
The commodity stocks were off sharply as middle east tensions were reduced that the EU US world government would be seeking economic sanctions rather than taking military actions:
Coal Producers, KOL, -9%
Energy Sevices, OIH, -6%
Metal Manufacturers, XME, -7%
Steel Manufacturers, SLX, -5%
Agriculture, MOO, -5%
Oil Producers, XLE, -4%
Brazil, EWZ -4%
BRICS, EEB, -4%
HUI Indexed Precious Metal Mining, GDX, -4%
Design Build Construct, PKB -3%
Japanese Small Caps, JSC, -3%
Stock Brokers, IAI, -3%
Mortgage REITS, REM -3%
China, FXI -3%
Russell 2000, IWO, -2%
Oil, USO, fell 4% as middle east tensions quickly melted as the EU US western world government sought redress and relief through the United Nations rather than through a military strike over the threat to global security posed by Iran's nuclear ambitions as Matthew Lee of the Associated Press reports in Major Powers Threaten New Sanctions on Iran.
Natural Gas, GAZ -7%
Oil, USO, -4%
Commodities, RJI -4%
Silver, SLV, -3%
Gold, GLD, -2%
The chart of the SPX, $SPX, the S&P 500 large caps shows three black crows to the edge of a head and shoulders pattern.
The chart of the Russell 2000 Value stocks, IWO, being more financially sensitive, are more market attuned than the Russell 2000 Growth stocks, IWN: the Russell 2000 Value shares, IWO, are the canary in stock market coal mine warning the investor to get out and get out now; note today's sharp fall lower and the RSI turning over.
The recently high flying biotechnology ETF, XBI, turned down; as did soaring LTC Properties, LTC a leading assisted living care REIT.
In my view, inflation takes the back seat to increasing political tension and stock and bond disinvestment from financial stocks, as the driving force for investing in gold.
In a world of increasing political tension, stock and bond disinvestment due to risk aversion to the level two and level three assets at banks, KBE, and investment bankers, KCE, and rising product inflation, investors are buying gold.
Your blog host, the Resourceful Bear says: "Product price inflation in countries like Vietnam is a stock, bond, and currency killer and a gold thriller".
Many are of conviction that recession, ending of trade tarriffs and farm aid, and demand destruction, as seen in the above mentioned report that inflation adjusted consumer spending is falling, as well as the inflation reported July 19 by ActionForex in article Weekly Review and Outlook: Sharp Reversal in Yen as Investors' Sentiment Improved, and that oil prices are going lower, so they assert that product inflation will not be a future issue in the US and in Europe; and they suggest that central bank interest rates will be going down from 4.25% in Europe and down from 2.0% in the US.
I believe military conflicts will arise between many nations; and that a 'world war' will erupt between the EU US western world government and Iran, and that these factors will keep oil prices high and inflation over a long term outlook, is endemic.
Risk aversion subsided and the metrics of liquidity rose
The EUR/JPY, FXE:FXY, bounced up to 1.690 from 1.680, with the Euro, FXE, going higher and the Yen, FXY, going lower to former support.
Back on July, 21, 2008, the Euro, FXE, manifested a bearish engulfing candlestick and capitulated to increasing risk aversion; but today it rallied.
The Yen, FXY, in the process of having rallied and now falling lower, is now at the edge of a head and shoulders pattern, which suggests an eventual fall lower.
The EURO, FXE, and the Yen, FXY, are both in the process of getting knocked lower, meaning that they will both soon be headed lower, with the US Dollar, $USD, in a death spiral lower together. It's just that the US Dollar, $USD, is temporarily up in advance of the Fed meeting; it will be going lower, awesomely lower, soon.
The USD/JPY rose to 108.08 on a lower price of oil; this is near the recent high as seen here in the Yahoo Finance 5 day chart. After the Fed meeting tomorrow, investors will be buying the Yen and paying back their 0.5% Bank of Japan loans.
The Yahoo Finance 3 month chart of USD/JPY is now at the zenith edge of an ascending wedge pattern which began with the March 18, 2008, Federal Reserve assisted JP Morgan buyout of Bear Stearns and provision of TAF, TSLF and PDCF facilities.
The USD/JPY, and EUR/JPY, will be turning lower tomorrow or immediately after tomorrow's Federal Reserve announcement, which is expected to announce that interest rates are to held steady: this will cause disinvestment from stocks both worldwide and in the US.
Interest rates are rising and bonds are falling despite stocks falling lower: a run on the US Government bonds is underway.
Despite today's red hot inflation report, I expect a rising debate among 'forex house pundits' that the Federal Reserve will announce a lowering of the central bank interest rate below 2% to stimulate the economy as well as to provide liquidity to banks as their stocks sell off after the meeting.
Nevertheless, I expect the interest rate on the 30 Year US Treasury Bond, $TYX, to continue to rise due to the bond market place calling interest rates higher due to a number of factors:
1) a lack of confidence in the US Treasuries as more TAF assistance is provided, and as efforts take place to liquefy and capitalize the GSEs Freddie Mac, FRE, and Fannie Mae, FNM, as the stock market turns lower.
2) a rising likelihood that the rating agencies will downgrade mortgage backed securities or the bond guarantors Ambac, ABK, and MBIA, MBI, both of which were up today in front of the Fed meeting for tomorrow.
The chart of $TYX, shows interest to be in breakout: first on March 14, 2008, in response to the Fed provisions of TAF, and then again on July 14, 2008, in response to the GSE Rescue.
I not only see stocks and currencies falling lower, I see US Treasuries, TLT, and the zero coupon mutual bond fund, BTTRX, falling in value as well: The island reversal in BTTRX and today’s upturn in $TYX, document that a run on the US Treasury Bonds is now underway.
We have reached both Peak Dollar and Peak Currencies
The international currency ETF, DBV, rose today. It had been rising beginning with the TAF rally, but it of recent days is in the process of falling lower.
The recent fall in the international currency ETF, DBV, like the fall in EUR/JPY, shows that we have attained 'Peak Currencies'; and tomorrow after the Fed announcement, we will definitely have obtained 'Peak Dollar'.
Today's close of the US Dollar, $USD, only 0.01% higher, gives credence to the concept of Peak Dollar. It's antithesis, gold, $GOLD, closed 2.5% lower at $894, just above its previous break out at $890 and the prior at $870; both of these times the yen carry traders sold out of the BRICS, EEB, for gold. I expect that they will continue to do so, and the process at least sustain as well as increase the price of gold.
Currencies are dying as Elaine Meinel Supkis relates due to too much governmental red ink, and risk aversion to a number of issues: inflation, the level two and level three assets at banks, the securitization of the the GSEs by the Fed, demand destruction, and the diminishing of corporate profits.
Interest rate differential investing long the currencies and long the markets is history, it's now an investment way of a bygone era.
Gold is rising as the world currency and means of preserving wealth
We have transitioned into a new era of 'financial disinvestment and instability' and also into 'the age of state corporate rule'; both of which suggest the wisdom of investing in gold.
Gold will be rising as the defacto global currency, and as the means of garnering and accumulating wealth.
Investment Recommendation
In advanceof the Fed meeting tomorrow, the Proshares Bear Market ETF, SKF, which is 200% inverse of the financial sector started to rumble and roar on the launch pad.
With Mike Mish Sheldon providing 25 Good Reasons For Believing The Banking System To Be Unsound, there is reason to understand the rumble and roar.
Here is the chart of SKF Daily, and SKF Weekly.
It was on July 14, 2008, that the yen carry traders sold out of oil, USO, to go long the financial sector as the Rescue Rally of the GSEs, Fannie Mae, FRE, and Freddie Mac, FNM, started.
Now the yen carry traders are going to be selling out of their bank, KBE, and investment banker, KCE, Ambac, ABK, and MBIA, MBI, shares, as the Fed announces that interest rates are going to be held steady at 2%.
While short selling may garner gains, it cannot preserve wealth, as all one has is a portfolio that is constantly depreciating in value relative to gold.
The chart of the gold ETF, GLD, shows gold to be in not one but two rallies. The first began May, 1, 2008, when the institutional investors traded out of the high yield dividend paying stocks, PEY, and went with the yen carry traders to go long the CRB commodity futures and the commodity indexed ETFs and mutual funds such as RJI, USO, DBA, JJG, and GLD. The second rally began June 23, 2008 when the yen carry traders traded out of stocks for gold: it rose from 87.
I wrote just the other day that gold had formed a consolidation pennant; and suggested that it could fall lower before moving higher; and today that happened; gold, GLD, could easily fall lower to 87 before moving higher again.
It is even conceivable that it could fall below 86; but should it do so, there will always be an investment demand for gold, with gold being more valuable that any other form of wealth, as seen in the following ratios:
gold relative to stocks GLD:VTI
gold relative to commodities GLD:RJI and GLD:RJI Weekly
gold realative to oil GLD:USO
gold relative to currencies GLD:DBV Weekly
gold relative to Treasuries, GLD:TLT
gold relative to Utility stocks, GLD:VPU
I also favor gold because it is an "investment safe haven" in times of political and economic turmoil.
And, I have written a lot about multiple systemic risk potential events such as in the article Tax Exempt Mutual Fund Investors Could Suffer More Than Other Investors When The Coming Financial Breakdown Starts.
When the systemic risk event materializes, a financial emergency could turn into a greater political and economic emergency.
The EU US Western World Government Graduated It First Police Force Class in Garmisch Germany on July 31, 2008. The class prepared forty two military and civilian emergency management officials from 25 countries to address, prepare for and respond to catastrophic events. It took an all-hazards approach to the developing field of civil security which includes civil defense, homeland security and crisis management. For years, many nations lacked a formal framework for the concept of civil security; but now civilian military cooperation and international cooperation is the announced ethic and way of dealing with catastrophic events.
The trans-Atlantic partnership and trans-world leadership and means are now in place to deploy military peacekeeping forces anywhere in the European and North American Continent.
Such a deployment would certainly favor those invested in gold.
I recommend that one invest in gold at BullionVault.com and at GoldMoney.com and that one invest in the gold in GLD, SKF, RYWJX, and TBT, in a trust account and not a brokerage account.
I also recommend that one open a Forex currency trading account and go short EUR/JPY and short USD/JPY. The weekly chart of FXE:FXY shows the end of the age of investing long with 0.5% interest from the Bank of Japan; as disinvestment gets underway, fabulous wealth beyond which I am able to describe is coming to those who are short these two currency pairs in a forex account.
The EUR/JPY rose today to 168.05 as recorded in ActionForex.com article EUR/JPY Daily Outlook Aug 04 08. Given my investment maxim, this represented the short selling opportunity of a lifetime; the maxim is: "In a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength".
The gravestone doji in the EUR/JPY occurring at 168.12 resistance in FXwise's chart articleToday's Candlestick View : 5th August 2008, seen in this chart, says sell, sell, and sell.
And the USD/JPY at 108.22 resistance, seen in this chart, given the Federal Reserve meeting for tomorrow, says sell, sell, sell as well.
Here is a report that shows that investing when done from a technical analysis perspective often will result in behind the curve and often results in destruction to one's wealth.
Stock Markets Consolidating Ahead of Another Leg Higher
Suggested Reading
How to keep your investments safe
