Wed Jan 12, 2012
Our theory was that the Euro would bottom at 130, the dollar would fall from about 80 and stocks would rally. It is not working out that way. The relationship has reversed, now US stocks are rallying as the Euro continues to fall.
The Dollar Index is in green. The Euro looks to ahve some support about here, see second blue arrow point upwards. If that does not hold, we go to 118.But that doe not seem to be interfering with our predictions.
SPX, Crude Oil WTIC, Gold
It's all one market but occasionally things get out of kilter. the Red black is the SPX, the sold black is crude oil, and the gold is gold. This I hope explains my recent recommendations for gold which is not back in an uptrend.
GM
Our contrarian pick of GM was up 5.29% today, did you buy some earlier?
Stock pulled back a bit today, we will see if the weakness continues into tomorrow.
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