THE STOCK & ETF CORNER

$CAD/SPY : Visual Basics

GLD : Of Dollars and Gold.

Anyone that reads this blog on a daily basis knows that since August 29th I have been calling for Gold to reach $1300/OZ before $2000/OZ.

Among the 352 voters,  we had 42% of naysayers ! Until now Gold is still hovering at about $1840/OZ and I'm pretty positive that $1300/OZ will come first before anything at or above $2000/OZ.

You have been witnessing (unless you live in a cave) that the USD Dollar is starting to catch some serious bid lately (fear of recession, flight to quality,deleveraging) ! I suspect that the USD dollar is going to make a serious comeback. We are going to have another episode of deflation with huge deleveraging. In this type of environment, precious metals will fall, stocks will fall, and the US Dollar will go up as they did in 2008.

Check out the price of GLD here. This is some serious evidence of bearish divergence.

On the flip side, the USD is showing signs of Bullish divergence.

 

UUP : Vesuvio !

A volcano can be asleep for quite sometime and an erruption could be devastating for those who are unprepared.

I am saying this because as I'm contemplating the chart of UUP (US Dollar Index) it seems that there is some smoke that is starting to come out of the volcano.

VIX/UUP : UD Dollar & Volatility

Interesting to see how correlated are the $VIX (Volatility Index) and UUP (US dollar ETF). 

According to my SPY analysis earlier this morning, this is what I should expect regarding the US Dollar (UUP) and Volatility ($VIX) going forward in the next few months.