The Once and Future Gold Standard?
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Some quick notes on direction…

Despite the imprecations of some, this is wholly and incontrovertibly a dollar-dependent market.   Wither the dollar, there goeth the market.   Your bombastic arguments may be amusing, but the Santa Gods only chuckle when you laud “progress” and “economic viability” like some kind of Parallel Universe Bizarro Karl Denninger.

(Slap! Slap! Slap! Slappity-Slap!)  Get serious, at once!  

 This market is riding a giant tsunami of Bernanke dinero and that’s why it’s been going up like a drunk clown in a circus dirigible.   But it looks like Benny’s press machines are getting a rest, ovah heah.   Or maybe it’s just that the rest of the world’s craptastic fiat currencies need a chance to catch up.   In any case, the dollar is back above it’s 50-day EMA:

I think it’s very likely we could see the dollar rebound all the way to its 200-day moving average (between $79-$80) before it turns once again like a wounded albatross and heads for the longer term lows in the $71 range.

As for our friend Baby [[HUI]] , I mentioned the other day that on Wednesday last week it came within $3 of it’s old highs from March of 2008 ($519.68).   That $516.16 high marked the top, however, and we’ve quickly sold down since then to close today at $461.19 — a $55 dollar move in 5 days of trading.   

If the stock market is sensitive to the dollar, then the gold miner market is even more so.   That’s why I think that Baby $HUI has got some more work to do here.   Here are my targets: 

Do I think the 61.8% fib  (@ $378) is also in play?   You bet your sweet bippy, Grandmaw.  Verily, I think the move down here is going to be somewhat soul-crushing, and I think the miners may feel the worst of it.   I bot some more SPY puts ($110’s again) and now my stash stands at 250 contracts, with a number more of sold calls in United Parcel Service, Inc. [[UPS]] . Monsanto Company [[MON]] and Silver Wheaton Corp. (USA) [[SLW]] .

But the bull is not over, make no mistake.  So bide your time wisely, here, and keep your wallet hand loose and well manicured as you get ready for the next swing. 

That is all, save for my final admonition about the foolishness of your not yet becoming a member of the Trading Hive Mind in The PPT.   What gives?  Don’t you like money?

Spock out.

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