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It’s Options Expiration Friday, and there’s all kinds of odd schtuff going on. Interestingly, I marked up the dollar chart last night, and again could only get the title to “save” to the site. I don’t know if this is a time of day issue connected to WordPress, or if it’s something going on with my home laptop (which is fine in all other respects), but it’s beginning to wear on me bones.
That said,that glitch allowed me to get some 20/20 hindsite on my review of last night, and that may be helpful to us all. Note how I was looking for further dollar destruction, at least to the 20-day EMA yesterday evening:
Well, what really happened, then? Instead of breaking down to the 20-day, the dollar soared (relatively, of course), starting at about 4:30 am (EDT) this morning, from a break-down below $75.00 all the way to $75.76 at approximately 10:45 am, before burning out like an dynamite-filled white Bronco headed to the sun and dumping 25 basis points in about an hour.
Was that all for the dollar today? I’m going to go out on a limb and say yes, and attribute this morning’s chicanery to folks interesting in goosing certain options positions.
I say that because the price of gold ($GOLD) made a curiously similar — but opposite! — dump and go at the exact same time that the dollar did. It dropped over $18 dollars starting at 4:30 this morning as well, from $1504/0z to $1486/oz, just as the dollar made it’s mystery march, only to viciously bounce back over $29 to $1515/oz in little more than an hour and half…
We currently stand at a nickel over $1513/0z as the dollar tries to work back over $75.50, but my “tell” that the ruse if over lies over in my pile of Jacksonian miner stocks, which continue to strengthen and all show “highs of the day” as of this typing.
Let’s see if my little prediction above doesn’t come true after all, despite early morning chicanery on the the part of Les Grand Shacqueurs du Monde.
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Meanwhile, if you want something more exotic than PM’s, I think you may have an opportunity in the Rare Earth Metals today, and particularly in one of my faves, QSURF:
I think this morning’s brief sell-off, which stayed above the 20-day EMA, may offer some entry opportunity for the less risk averse among you. Best to all.
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