Figure 1 - USD Index
In yesterday’s (Jan. 19) analysis , I commented on the above USD Index chart in the following way:
The USD Index is after a major breakout above the declining resistance lines and this breakout was confirmed. Consequently, the USD Index is likely to rally, but is it likely to rally
shortly?
The answer to this question is being clarified at the moment of writing these words, because the USD Index moved back to its rising short-term support line that’s based on the 2021 bottoms.
If the USD Index breaks below it, traders will view the 2021 rally as a zigzag corrective pattern and will probably sell the U.S. currency, causing it to decline, perhaps to the mid-January low or even triggering a re-test of the 2021 low.
Billionaire Louis Bacon Shuns Bitcoin, Returns 70% By Betting On These Stocks
Billionaire Louis Bacon’s hedge fund Moore Capital Management has generated massive profits during the first year of trading after the macro hedge fund manager decided to step back from managing investors’ money in 2019 and consolidating its three funds into a single fund. Moore Capital, which oversees Bacon’s and partner’s money, gained more than 70% in one of the most unpredictable years.
One of the most successful hedge fund managers of his era Louis Bacon, who established Moore Capital in 1989 using a $25,000 inheritance from his mother and returned 17.6% annualized return since inception through 2019 from its flagship Remington funds, last year said in an investor’s letter that his firm would operate with less participation from him. Here is what he said in an investor’s letter:
Yet Another Bearish Sign: Gold & Silver Not Reacting To What Should Make Them Rally – Investment Watch investmentwatchblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investmentwatchblog.com Daily Mail and Mail on Sunday newspapers.
As of Wednesday (Dec. 30) morning, gold is range trading and remains more or less flat as it seeks momentum. As we wait for the precious metals to act on a catalyst, let’s also take a look at the Euro’s relation to the U.S. Dollar and how both impact gold.
Over the last 24 hours, the precious metals market did more or less nothing, despite the new daily decline in the USD Index. The latter is now testing its monthly and yearly lows, while the PMs are not. PMs – as a group – are not reacting to what should make them rally, and this is yet another bearish sign for the precious metals market.