Just a short update: The metals, not surprisingly, are bouncing a tad higher this morning in a normal three-day reaction from last week’s lows. Nothing to worry about.
Gold is testing the $1,330 to $1,338 technical resistance level, while silver is testing its equivalent, the $19.65 to $19.95 level.
Interestingly, the weekend’s G20 Summit in Hangzhou, China was a non-event, with no major agreements made on anything but more global economic cooperation and global warming.
So to the analysts and talking heads who expected the dollar to take a hit as a result of the G20 meeting, once again, you have egg on your face. And you will again, come the IMF September 30 meeting when the yuan is officially admitted as part of the Special Drawing Rights (SDRs).
This week is shaping up as a turning point, meaning we should see a resumption of the downtrend in the metals, a rally in the dollar, and a decline in the euro.
The stock market is also teetering on the edge, having, once again, not elected my monthly buy signal at 18,500 on Wednesday, August 31.
Stay tuned. I expect to issue new recommendations this week and the market action should pick up substantially.
Hold all positions and related stops …
Best wishes,
Larry
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