Just a quick update here: Though all markets have been taking their time of late, the euro is tumbling today. Not surprising. But the trigger was none other than this morning’s European Central Bank meeting, where Mario Draghi kept rates unchanged, but is also ready at any moment to start printing more euros.
As a result, the euro is down more than 1.6%, a huge move for early morning trade. Important support levels have given way, and now it appears that the euro’s next leg down is solidly underway.
Currently trading at roughly 1.116 to the dollar, as I forecast a few months ago, I expect the euro to trade down to 1.04 by the end of this year, if not sooner.
This is great news for the inverse euro ETF (EUO) as well as the call options on EUO, the recommended January 2015 calls, strike price $25.
Meanwhile, gold continues to act weak in accordance with the cycle forecast. Hold DZZ.
Also hold your bearish equity ETFs, UVXY and QID. Stocks still appear to be topping. The stronger dollar is a negative for the stock market.
Hold all positions and related stops. Lastly, thank you for your emails. I am feeling much better, and have caught up answering many of your recent emails. Some I am holding for next week’s live webinar, so be sure not to miss it.
Best wishes and stay tuned…
Larry
