The intermediate trends for the dollar, gold and miners will have many weeks to continue before we should anticipate a change in direction. The weekly momentum indicators and sentiment readings suggest the dollar will continue to fall while gold and miners will continue to rise.
The dollar is possibly completing the right shoulder of a head and shoulders pattern. Overnight price completed a swing high suggesting a decent possibility the daily cycle has topped. Several scenarios for the dollar’s future price movement are discussed, as well as the implications for price performance of gold related investments.
In a bull market surprises come to the upside and it’s never advisable to lose one’s core position. This rally isn’t going to top until sentiment gets excessively bullish. Right now sentiment is dead neutral and it will take 5-10 more weeks before sentiment reaches 75% or higher.
The daily cycles in gold and the Euro have likely topped and the US Dollar bottomed. This video discusses the likely price direction of gold in the short and longer term.
Just like I predicted many many people are getting schooled. In a bull market all long trades will ultimately get rescued no matter how badly timed the entry.
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Entering the Buy the Dip Phase
One of the reasons most people are unable to make money in the stock market is that they are unable to change their expectations and suffer from recency bias.