US Dollar Lost At Sea- Substantial Breakdown in Progress

Submitted by Morris Hubbartt:

For several weeks, my US dollar analysis has been focused on daily charts. The dollar’s current counter-trend move has not taken the price above 80.50. I think the rally is ending here, and a new decline is about to begin.   My focus today is on the larger picture portrayed on the weekly chart.  Here, 80.50 is also a key level.
Since 2005, the dollar has meandered aimlessly between about 70-90, creating the appearance of a cork lost at sea.   Now, a substantial breakdown seems to be occurring.  Oscillators are continuing to “head south”, intensifying the long-term downtrend in the world’s reserve currency.   

In particular, please note the action of MACD, which is producing a fresh sell signal.  Each high point attained by MACD is lower than the previous one.   The chart is covered with technical non-confirmations, suggesting the dollar may be ready to tumble. 

 

US Dollar Cork In The Sea Chart

 

  • For several weeks, my US dollar analysis has been focused on daily charts. The dollar’s current counter-trend move has not taken the price above 80.50. I think the rally is ending here, and a new decline is about to begin.

 

  • My focus today is on the larger picture portrayed on the weekly chart.  Here, 80.50 is also a key level.

 

  • Since 2005, the dollar has meandered aimlessly between about 70-90, creating the appearance of a cork lost at sea.   Now, a substantial breakdown seems to be occurring.

 

  • Oscillators are continuing to “head south”, intensifying the long-term downtrend in the world’s reserve currency.

 

  • In particular, please note the action of MACD, which is producing a fresh sell signal.  Each high point attained by MACD is lower than the previous one.

 

  • The chart is covered with technical non-confirmations, suggesting the dollar may be ready to tumble. 

 

Gold Arc Chart

 

  • My gold targets are $1850, and then $2015. Volume-based support sits near $1721 and $1703.  I bought near both price points.

 

  • There is more support around $1690.  Note the Fibonacci 38.2% retracement line.  It sits at about $1694 (the 2nd red line from the top). A decline to this important level could see strong buying of physical gold.

 

  • The recent CCI spike down is indicative that sellers are exhausted. This key indicator is moving higher, while gold declines.  It’s a classic non-confirmation, and good news for the bulls!

 

GDX AMERICAN FLAG CHART

 

  • The corrective price action in GDX is moderate and constructive. As GDX peaked near $55, my initial projection was for a decline to the $47.50 area.

 

  • More pullbacks occurred in the shares this week, yet GDX is not even close to my original downside target.

 

  • This GDX chart paints a clear picture of resiliency. While gold bullion did decline to my inner Fibonacci arc target, GDX is still quite a distance away from its inner arc.

 

  • Gold stocks are poised to dramatically outperform bullion.

 

  • Another outstanding feature on the current GDX chart is the bull flag pattern. The flagpole was created by strong volume, which is very bullish.

 

  • Volume has faded nicely within the flag itself, and a breakout appears to be imminent.  My target is $66, where I suggest you book solid profits.

 

GDXJ Pennant Chart

 

  • When compared to gold & silver, GDXJ is displaying strong performance. In previous years, the physical metals did better than the mining companies.  This is a welcome change, and I think it’s one that is here to stay.

 

  • Look at the Fibonacci arc on this GDXJ chart.   Unlike gold and silver bullion, GDXJ is not even close to its inner arc. The strong performance of junior stocks in this corrective phase, is evidence that when the bull trend resumes, they will continue to lead.

 

  • There is an important pennant formation on this GDXJ chart. This pattern indicates that the current period of consolidation could be followed by a very strong move to the upside.  

 

Silver Buy Signal Chart

 

  • Nobody enjoys unexpected volatility in the price of their favorite asset, but a real opportunity now exists in silver.

 

  • Based on my price and volume support studies, silver is approaching solid support in the $31 area.

 

  • The RSI oscillator is also near a key turning point.  I am projecting that it should reach its maximum oversold reading as silver touches $31.

 

  • I will be buying physical silver near that $31 price.  Silver fans should consider buying there, too!

 

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25 Super Force Buy or 25 Super Force Sell: Solid Power.

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75 Super Force Buy or 75 Super Force Sell: Maximum Power.

100 Super Force Buy or 100 Super Force

Sell: “Over the Top” Power.

 

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Our Super Force signals are created thru our proprietary blend of the highest quality technical analysis and many years of successful business building.  We are two business owners with excellent synergy.  We understand risk and reward.   Our subscribers are generally successful business owners, people like yourself with speculative funds, looking for serious management of your risk and reward in the market.

 

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Comments

  1. If you haven’t watched this recent 5 minute video from Lindsey Williams, it’s a little scary:
    http://lindseywilliams101.blogspot.com/
     

  2. Heck why wait for $31.00 to buy silver, I’m buying all the time until I reach my goal in oz’s then sit back and watch it climb. I’m not in it for the profit but the security it will bring WTSHTF. Lol and if it’s true what he says about the dollar and I don’t doubt him the next resistance point if there is one will be $36.00 IMO

    • Right on Charlie.

    • You’re right! I think of my wealth in the number of ounces that I have and not how much I paid for each of them. Whenever silver’s price goes down, I tell myself that if silver reached about 50$ twice, then why wouldn’t it reach that price again and that low silver price means that I’ll be able to buy more silver cheaply.

  3. “LOST AT SEA” – A fitting description to say the least. What will we use to describe silver? :-)

    •               “LOST AT SEA” – A fitting description to say the least. What will we use to describe silver?

      In line with that – “Waiting to be found?” or “Long overdue ship about to come in?” Maybe “Silver, the undiscovered opportunity?”

      Otherwise:
      Submerged, preparing to blow ballast?
      Launch imminent, final countdown in progress?
      Silver rocket set to go ballistic?

      But there are 2 food ads that I think work well:
      “Silver, the other precious metal.”
      “Got silver?”

  4. @ SD “Look For That Silver Lining”. Lol

  5. MORRIS, YOU HAVE BEEN WRONG COUNTLESS TIMES … I would have a better record than you by just flipping my koala coin coin so stop posting on 321gold already cause i don’t think anyone pays attention to you anymore because of your broken record .. now you found silverdoctors? lmao

    • It seems Morris rubbed you the wrong way. I hope you didn’t go into paper on his account. lol

    • All these cheap analysts do, is make money from subscribers, not from the markets, because they’re cheap shots, so I give it to them when I get a chance so others don’t fall in their trap, thanks to silverdoctors for the uncensored website.

    • That’s why I don’t trust the financial pundits because they keep changing their gold and silver’s prices predictions and their previous predictions are wrong most of the times. Think about gold and silver’s prices predictions with your own mind.

  6. Though the American banknote can be analogized as the Bridge, the ship in totality is the banknote scheme itself. Events I’m observing tell me the ‘ship’ isn’t merely floundering, but rather, in fact taking on heavy water. The ‘dollar’ chart looks more like the aft-section is already below the water-line and on the verge of losing remaining boyancy. This is true of all these ‘currencies’ when measured in precious metals. Hell, even the ‘base’ of real money, copper, is twice its 1912 banknote worth … and still severely under-valued in rel;ative analysis!

    ‘There are many here among us
    Who feel that life is but a joke
    But you and I, we’ve been through that
    And this is not our fate
    So let us not talk falsely now, the hour is getting late’
      

  7. Well, well, well.   As I read this post and began getting a little queasy, the theme from Gilligan’s Island kept running though my head.  Instead of a 3 hour tour, we have been on a 3 year journey with Gilligan and the Skipper, aka Geithner and Bernanke, at the helm.  Instead of having the Professor to bail them out with a quick techno-fix, we have Jamie Dimon throwing sand in  the gears. 
    Of course Thurston Howell the 3rd and Lovey, aka Mario Draghi and Christine Legard/NWO,  will always do well since they own the cruise line, the island and the whole freaking ocean   They  know the fix is in.  Maryanne and Ginger will keep the Sheeple entertained as the Good Shiop Lollipop sinks in the sunset.  Got life jackets—silver life jackets?   Good.  You’ll float just fine.
    Just don’t take no rides on the Costa Concordia.

    • Right on AG. I am still looking for an island where we can settle until the proverbial sea foam has cleared.  

      Blood and destruction shall be so in use 
      And dreadful objects so familiar 
      That mothers shall but smile when they behold 
      Their infants quarter’d with the hands of war; 
      All pity choked with custom of fell deeds: 
      And Caesar’s spirit, ranging for revenge, 
      With Ate by his side come hot from hell, 
      Shall in these confines with a monarch’s voice 
      Cry ‘Havoc,’ and let slip the dogs of war; 
      That this foul deed shall smell above the earth 
      With carrion men, groaning for burial. 

  8. 2 Oz. per week, every week, every month, all year long. Any questions? Cost average guys and you won’t go wrong.

    • Yep, dollar cost averaging is king. lol

    • “2 Oz. per week, every week, every month, all year long. Any questions?”

      Yes, I have a question.  Given the probably time remaining for this whole things blows up, is 2 oz per week enough?  It is absolutely WAY better than nothing but…  

    • I buy silver whenever it is available for sale at my local coin shops at a low premium and when I have the cash to buy them. I also buy pennies so that I can get copper pennies. When I’ll have 1000$ in face value copper pennies, I’ll exchange them for an ounce of gold.

  9. 2OZ how have you doing?  It’s been a while since your voice has been heard on SD.  Any news on your business and the crops?

  10. God this thread looks like old times. LMAO

  11. How that my pain level has subsided to about a 4, a bit of humor is in order.

  12. You know SB, I think the one way to really get under the skin of TPTB is to laugh at them.  These overstuffed narcissitic arrogant SOBs can’t stand to not be taken seriously.  Just the simple act of laughing in their faces, using vox humana or electronic giggles and grins, is a great way to repudiate their BullS*** and send them back to their caves. 
    We are on to them big time. 
    This non-violent approach to rejecting their Hegelian Dialect that puts us at odds with our fellow human brings is one of the best ways  I can think of to buy enough time so that they end up dying of old age.   Just recently the young girl Mala from Pakistan gave me some real hope that one incredibly brave 11 year old (now 15) could stand up the the savages in the Taliban.  Well hell, if she can take the hits they dished out we sure as heck should be able to push back against the slime that eats away at the fabric of our souls.  The nerts at the Nobel Peace Prize committee awarded the EU that prize.  What a joke.  IMO Mala should have gotten it even if it was retroactively to 2012  The EU is nothing if not  just one more manifestation of the NWO and old elite mean us harm. I’m laughing at that joke too.

  13. The dollar index is not very useful now when you think about it. It is set against the value of a basket of other currencies that are tanking also.

  14. “ I think the rally is ending here, and a new decline is about to begin.”

    OK, so given that AND the courage of his convictions, he is investing his own personal wealth in US dollar puts, right?  RIGHT???
     

  15. Hello Ed_B. No 2 OZ. a week isn’t enough. LOL. Neither is 4 oz., 10 oz, or 100 oz. per week. However, 2 oz. a week gives me 104 oz. per year. This is in addition to what I purchase when a nice dip comes along or extra pocket lettuce is available. The 2 oz. is what I  get from not buying 4-5 cups of coffee and day, taking my lunch to work rather than buying lunch and drastically cutting back on smoking (soon to quit hopefully). My point is to stack steady with any means you have by setting a goal, no matter how minor it may seem, and sticking to it. The cost average works out great, the stack grows and if the world doesn’t fall apart or the price stays low enough for a while longer I’ll be happy. So keep stacking as high as you can and as fast as you can.
     
    AGX, The crops were very good here as compared to most of the crops raised elsewhere in the US. As far as the business, still in the works but not progressing as quickly as I would like. I’ll bide my time and continue working on it until time is right.

  16. Hello, 2 oz.  When I first started reading this web site, I read quite a few of your posts and enjoyed them.  Haven’t seen many of them for a while now but it is good to see you’re still around and stacking!  :-)

    I agree completely that buying a fixed amount of gold and / or silver is a good way to build a nice stack.  Buying more on the dips is also very good and I am trying to do that as well.  But I have been arguing with myself lately as to how much is actually enough.  The figure that I come up with seems to change as I go along, so am always questioning how much is really needed.  Clearly, more is better than less.  Much depends on the nature and duration of any SHTF situation that comes along and none of us really knows what that will be or when it will arrive.  Inflation is pretty predictable, though, and PMs make great inflation hedge money.

  17. Thanks for the kind words Ed_B. I think we are in the same boat. How much is enough? I’ve been stacking for a little over two years and that has been the toughest question in that time frame. Brother John had a vid. a while back where he was asked the question same question. His answer was he thought maybe 500 oz. would get you through the eventual collapse. Of course, John made sure that was his opinion only. I thought about it and agreed. Personally, if I could stack 5,000 oz. I would feel much better (not happening anytime soon LOL).

    A lot depends on how ready you are for other situations. When SHTF and food prices skyrocket, do you have a long supply of food or can you grow your own? If not, you may have to spend some silver. Do you have a supply of paper products or will you have to spend $12.00 for one roll of toilet paper? Can you trade some skills for necessary items or will you have to spend more silver. You get my point. Stack to the ceiling but don’t forget to do the other things like get out of as much debt as possible, prep for the water/food situation, keep your supply of necessary meds. available, etc. I hope this helps.

    I’m not sure how much you have in silver, but, I think the 500 oz. target is a great start that will put you more in control of your future than most everyone else. Good luck and stack high. 

  18. Yeah SB, I’m constantly preaching you need more that silver unless you very rich. As 427 said (and others here too that have been stacking a while) “I’ll help my family and friends with my stack”. Right on. To me, 500 OZ. is minimum (IMO) but invaluable. Keep stacking all.

  19. I got rid of my US dollars a long time ago by using them to buy physical silver. :D The US dollar collapse will also cause the collapse of the US economy. If the US economy collapses, then so will Canada since the majority of its trades are made with the USA. :(

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