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Monday, October 25, 2010

Time to buy back Gold Miners already?

It is looking like the US dollar is on the verge of resuming its decline, failing to make a significant bounce higher as I and others expected. I REALLY thought the US dollar would continue to move higher, above 80 before failing.
But as they say, you trade the tape your given.........

If the USD resumes its decline and breaks below 76 (click here for real time charts), then, its a good sign to go 100% back into resources. Gary of the smart money tracker is likely to jump back in tomorrow if Gold firms up, before end of the trading day. I am really on the fence here, I have been whip-sawed many times before. I have decent positioning in natural resources, just not loaded to the max. Safe to say, if USD plunges below 76, I am 100% back in, and between now and then, eh, I'll see how it goes.

When the USD breaks below 74, I am scared of an accelerated decline, which I really hope won't happen. But between expecting the USD to make new highs, and new lows, my expectation is new lows.

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