One of those things that are useless for short-term trading but interesting to look at – the big picture.
$SPX is candles, U.S. dollar is the black line. Not always perfectly correlated, but clearly that’s the game for now.
Every time they run out of something at the grocery stores the price is always higher after re-stocking, without exception. Be it 20 or 40 cents, but it’s always higher.
And I noticed things go out of stock a lot faster (credit issues? other reasons for stocking less?), which means the prices go up quite often. It’s been happening for at least 18 months now.
Food inflation is rampant, despite the fact that the Canadian dollar is doing really well.
Ha, I use 2 different variations of my first name. Depending on that my name anagram comes to BLUNTER SHOVE or NERVOUSLY BEAT. The first one is a disturbingly accurate description of (some of) my traits.
(see, pretty blunt)
Very short term but still, possible falling wedge — a bullish reversal pattern — is developing on the U.S. dollar chart. Imo dollar going up won’t necessarily hurt gold because in the last couple of weeks both gold and the dollar were advancing at the same time, at least a few times.
I looked at this chart on June 22nd. I wasn’t sure if the pattern that was building was bullish or bearish. It didn’t exactly break out, there’s now an extension to that ‘whatever-it-was’.
And I’m now leaning towards it being a bull flag (= falling wedge).
Dollar daily cycle low is due any day now. Today is day 20 of the daily cycle that usually lasts between 18-28 days according to The Smart Money Tracker.
If current dollar-market relationship doesn’t change, then U.S. dollar going up would be bearish for the market.
Damned if you save, damned if you don’t…
Source: Times Online
Japan Considering Taxing Cash; “Nominal Rates of -4% Might be Closer to What is Required to Rescue the Economy from Another Deflationary Spiral”
Unorthodox, untried and, said one Bank of Tokyo Mitsubishi strategist, “in the realms of economic science fiction”, the recommendation has nevertheless begun floating around Tokyo’s corridors of power and economists have described Japan as particularly suitable as a testing ground.
I don’t know why they say it’s unorthodox and never tried before. Sweden has done it before, albeit in a slightly different form.
Edited to add: “Apart from France, within Europe, Greece, Norway, Switzerland, the Netherlands and Liechtenstein impose a wealth tax, although often with lower rates and higher thresholds of imposition than in France “