I have not posted on HotCopper for a while, given the nonsense amongst posters.
It appears that disruptions are becoming few and far between, which is certainly encouraging for those aspiring to utilise this resource for the purposes it was intended.
This place is only as good as the posters that frequent it.
Currency Positions
I indicated at the beginning of this year that My top picks were A$, E$ gold and gold equities.
Since the beginning of this year, both the AUD and EUD have increased substantially against the USD.
It is my opinion that within the next 76 hours, the Euro dollar will overtake the US dollar in terms of value.
I have been watching currency markets very closely over the past few weeks, and have noted the burgeoning sell off is US$'s. I use the word burgeoning because I believe the selling is not over yet.
The Australian dollar, and in turn Australian equities have been either strong or resilient (depending on where you sit) during the U.S selloff.
My pick = A$- 59 U.S cents within one week and E$ 100 cents per US within one week.
The A$ is currently trading at .5753 U.S cents and the E$ is currently at .9870 U.S cents.
Gold
At this point, many analysts have been suggesting the POG (Price of Gold) to either retrace or consolidate.
Last night, the POG was hit substantially because of early rises on U.S market equities. Towards the end of the trading session, the POG recovered, and since that time it has been stronger due primarily to the increase in value of the E$ relative to the US$.
It is hard to see the POG falling below US$315 in the short to medium term.
If the Euro continues to increase against the US$, the POG will increase proportionately.
Analysts are waiting for U.S$330 to be breached and held for a couple of trading sessions.
Equities
The U.S equities market looks like it will fall further in the short term. Mind you, when it does bounce back, it will be substantial, however not sustainable (visa vi PWR today).
The continuing sale of U.S assets will lead to additional weakness in the U.S equities markets.
The Australian equities market will most likely follow the trend of the past couple of years: in the context that whatever happens in the U.S, Australia will be less affected.
The U.S market will likely take a big hit tonight regarding the WorldCom situation. This has already, and will continue to weaken TLS and NCP.
Aurion Gold will announce later today, or tomorrow, it is rejecting the PDG takeover offer, and will look for better value elsewhere.
