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July 27, 2009 – Since March 23, 2001, we have been holding goldgrams as our Core Currency Position. On May 4th traders sold the US dollar by shorting the Dollar Index at 83.97. Stop out this trade if the Dollar Index closes above 81.10. It appears that the Dollar Index is beginning to accelerate toRead more

July 25, 2009 – The XAU Index is again testing overhead resistance at the 152-154 area, which has been discussed many times recently.  Like gold, the XAU Index may also do some ‘backing & filling’ over the next few weeks.  But the trend remains up.

July 13, 2009 – The chart below  presenting total US employment over the past twenty years was prepared by the Economic Policy Institute. The EPI is a Washington-based think tank that focuses upon the interests of low- and middle-income workers, with particular reference to their economic condition. This chart and an accompanying article about theRead more

The DJIA could not climb above its 200-day moving average and has now slipped back below overhead resistance (the horizontal red line on the chart). The Dow looks oversold and could bounce, but for now, the trend is pointing lower.

Beginning in April, the dollar fell pretty much in a straight line into early June. Since then the US Dollar Index has moved sideways on either side of 80, and it has clearly demonstrated an inability to rally, which is a sure sign of underlying weakness. It is also a good indication that the next major move for the dollar in all likelihood will be down.

July 13, 2009 – The countertrend rally in the price of long-term government paper is probably over. The reality of too much federal government debt that needs to be borrowed is about to overwhelm the debt markets and send yields higher. The 30-year T-bond is already showing signs of weakness. It is only a matterRead more

July 10, 2009 – As is clear from the following chart, we can see that there was some technical damage to the XAU Gold Mining Index.  After finally climbing above the key resistance level around 134, the XAU dropped once again into the high 120s.  This outcome is of course disappointing, but the technical damageRead more

June 29, 2009 – The Dow Jones Industrials Average is at a very interesting juncture. Please take a close look at the following chart. As the dollar moves toward hyperinflation, I expect stocks to rise. I explained this point in recent letters. The general averages will not do as well as gold, and certain sectorsRead more

The dollar is headed for hyperinflation. The dollar is headed for the fiat currency graveyard. Do not lose sight of this important point. Do not believe the propaganda of government officialdom that they know what they are doing and will take care of your best interests. The fact is, they don’t know what they are doing, and they are not looking after your interests.

My comments remain unchanged from recent letters. With each passing day, December’s top in prices (i.e., low in yields) looks more and more certain.