Hourly RSI

The weakness we've been waiting for has made a glimpse of an appearance. Gold is down $5, and hourly RSI has fallen to the high 40 range from the mid 70 range it was at yesterday. Now this is why we keep some cash on hand. If you are now 50% in cash, start buying in. I'd say go in 50% of your cash so you should still have 25% of your portfolio's value still in cash. Another Pullback is very possible but with such strength in gold recently I wouldn't want to take my chances one way or the other. The next few days could very well be some bouncing in this 960 range so lets see what happens, but a move lower on the dollar, as well as a push higher on gold towards 980 will soon be inevitable. The dollar has gotten slightly better daily RSI levels, as it was close to the 30 mark making it undersold. It now rests at 33, which is better, and still has room to go as the last few times the dollar was oversold RSI reached 26-22. Daily gold is at 61 leaving it room to run as well. (As a note action in the euro is beautiful as it is now "flagging" since its break up above 1.43 obviously waiting for a further decrease on the dollar. I've mentioned before to a few people on "investing" that don't have much liking for the market to take the cash from there savings accounts and open a brokerage account and have the broker hold the cash in Euros. If the Euro reaches the 1.60 mark, and I believe it will by the end of this year or sooner, you'd make 10% on your money by not holding dollars. Or should I say you wouldn't lose 10% like everybody else. If at all possible with your broker, hold all cash in your portfolio's in Euros. Trust me, you'll thank me in a few months.)

Onward to stocks. Gold's down today, if you listened to me on that GSS your beating the market today, and the rest of the gold industry as it is holding nicely up 3-4%. Were gonna hold this one still as the 2.70-2.75 target I have for this has not been realized. Depending on action in gold and a soon coming 2Q and exploration report Tues Aug 11 (next week) from them, that target may be moved up. I'll let you know. All though daily RSI on GSS is creeping up, It will still have room to run due to this picture perfect breakout, a move up in gold, a move down in the dollar or all three.

Next point of interest IAG will release earnings tomorrow morning. Although I expect them to be great I also expect everyone to sell the news. IAG is the next target after GSS breakout is complete. How this plan works is all up to gold and the markets response to IAG tomorrow. 11.50 is the 52wk high and it will be soon broken very similar to how GSS's was. PAY ATTENTION! This one is going to be important.

These markets are boring me so I'm taking the rest of the day off. Nothing to buy, Nothing to sell, on days like these, just go fishing, it's better than trying to force things.

-J