HUGE WARNING. BE PREPARED. Yesterday on Bloomberg I saw the well respected chartist Tim Hoogard from City Index predict, based on his chart and cycles work a big, counter rally for the US dollar. Eg. he predicted a 10% strengthening against the euro. That would take it from 1.3500 to around 1.2100. THAT WOULD SMASH GOLD.
Tim Hoogard also said that everyone is bearish the US dollar now. When that happens there's usually only one way - that is for the US dollar to strengthen. No wonder gold and gold shares have been so feeble recently. In the short term based on an anticipated US dollar rally it is looking very sick for gold and gold shares. The HUGE WARNING IS HERE. On the bullish side Tim Hoogard did predict that oil would not fall below $40.00 and has a target of $89.00. Does a switch from gold shares to oil shares make sense?
