SCT Issue #231
Greece’s parliament approved the latest austerity terms, but as I mentioned yesterday, the IMF is getting ready to back out of any further bailouts of the country.
As a result, this morning there are rumors floating that the onus of the bailout funds will have to come from none other than the European Central Bank (ECB) and its printing machine. Germany and other European countries simply do not want to foot the entire bill.
As a result, in early morning trade, the euro is taking a shellacking, plunging to the 1.0890 level. There is some technical support at the 1.0850 level, but once that gives way, the euro could easily slide all the way to par, or 1.00 to the U.S. dollar.
That’s the short-term. Long-term, as I have said many times, the euro will plummet to 0.80 to the dollar.
Right now I expect a bounce, but don’t be surprised if I soon recommend an inverse or bearish ETF on the euro. So stay tuned to your inbox.
Meanwhile, gold continues to sink, as expected. Gold is now below the important $1,150 support level. A bounce is overdue, and if it happens that’s all it will be, a bounce.
Gold’s next big move should be lower to support at the $1,132 level, then to below $1,100. Hold your bearish positions on gold; they are poised for more gains.
I am also looking at a bearish position on oil. Crude has been unable to get back above the $52 level on its latest bounce, and it’s starting to head south again. I need a bit more data to confirm the turn lower, but be ready to take on a new recommendation seeking to profit from oil’s next move – back to the mid-$40 level, soon.
Hold all open positions and related stops.
SPECIAL REMINDER: Please – if your savings and investments matter to you – do NOT miss my online briefings next week; this coming Monday, Tuesday and Wednesday (July 20, 21 and 22).
At each of these briefings, I will present my evidence. I will give you my forecasts. I will name the investments that I’m convinced will multiply your money many times over – the very investments I’ll be recommending here in the weeks and months ahead.
Because you are a valued member of my online family, I have taken the liberty of pre-registering you; reserving a seat for you at these briefings.
To attend, simply click this link a few minutes before 2:00 PM Eastern Time (1:00 PM Central, 12:00 Noon Mountain, 11:00 AM Pacific, 6:00 PM GMT).
Until then, here’s wishing you the best of luck.
Sincerely,
Larry Edelson
Editor, Supercycle Trader
(Formerly, Gold and Silver Trader)
