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The relationship of gold to the dollar is integral to my Jacksonian thesis, and I think to this overall market as well.  So I think it dispositive with regards to arguments that portray this market reflating on real earnings or anything of any tangible weurth (sic) to take a step back and look at a longer term picture of the gold dollar ratio. 

I bring you that view here with the following weekly chart illustrating the price of gold divided by the weurth (sic) of the U.S. fiat dollar in the form of “$USD.”

Maybe not exactly a textbook “CANSLIM” Whitman-style cup & handle, but given the proximity of the 34-week EMA here, I think we are setting up for a blastoff.

Here’s my other confirmation-biased bias chart that tells me the dollar is about to meet it’s comeuppance.   This is a longer term chart of the dollar alone ($USD again, and as of yesterday’s close) .   Note on this weekly how we are fast approaching two very significant fibonacci lines (50% retrace of the upmove and 38.2% retrace of the down-move) which I think will serve as a hard brake on this dollar exhuberance.

Note again that this is an “end of day” look (thanks to Stockcharts chintziness,  I cannot get you DXY intraday), and that we are already 40% of the way to filling the rest of that circled gap to the combination fib lines.  

Ben has been re-appointed ladies and gentlemen, and there’s a reason for that.   He certainly is not going to let down those 70 or so Senators who backed him in an election year.   The dollar will weaken again, believe it.

Trade accordingly.  I will be sniping for select names in the woods, as per usual.

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