I went into a big crazy explanation of what I thought the psychology was behind a "cup and handle" and then later in the same post, why an "inverted cup and handle" went through some of the same psychology, only in reverse. In case you don't want to follow the link to see what I'm talking about, I'll just summarize by saying that these are relatively predictive chart patterns. The inverted cup and handle I was most concerned about was the one in the US dollar. I had a really hard time finding a good chart that really showed this, but just today I found one on a site that stole it from GoldMoney.com.
I decided to steal it as well to help illustrate the point in more glowing detail, hopefully.
Of course, this isn't all academic. The falling dollar is what makes your imports (if you're living with dollars) cost more. In addition, it can even make things that people compete for on an international scale cost more too -- even if they are made in the USA (see wheat, corn, your local neighborhood food aisle, and comin soon to meats!)
ciao,
fubarrio
ciao,
fuBarrio
1 comment:
p.s. in case you are grumbling now that it doesn't do you any good to point out a trade that you've already missed most of, don't worry...the dollar will keep sinking :)
seriously though, if you think the dollar trade is over and don't want to get involved in a page one story trade (i don't blame you too much), stay tuned. i think uranium (believe it or not) is getting ready to run again.
last year, i would only give generic recommendations to buy uranium juniors...i didn't want to appear to be talkin my book (talkin up stocks i owned), and i didn't want to jinx any of their movements.
But, this year if i see a setup in a stock i own (or even don't own) i'll show it and we can follow its price movements in "real time" together.
Be forewarned however, past performance is no guarantee i won't lose my ass this year. For starters, i have a full time job that keeps me very busy that doesn't have anything to do with analyzing junior mining companies.
fuBarrio
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