We all love watching the US Dollar Index don't we?
This is a rising wedge. We can clearly see there have been more than enough attempts at breaking out to the upside and each one fails pretty horribly. If I were ignorant to the world beyond the DXY, I'd say the dollar looks to be going lower. It may attempt one more move above 76, but when it fails it will be a pretty significant downward move I believe.
I don't believe in seasonality of money, I don't think there is a summer doldrums and I don't think that gold and silver are the same as food crops. Their value remains pretty stable, even with market games controlling price.
Now with both gold and silver showing strength since July started, I'm thinking that the summer heat is catching traders off guard. I think we're about to see a big movement in both metals and also continue to see both the Euro and USD fall relative to other world currencies. Media will try to claim that the pricing of gold and silver is caused by uncertainty over the debt ceiling issues in the US, but I know, from experience, that the MSM is chock full of a bunch of retards who regurgitate what they're told from their so called "experts" that are wrong more than they're right. The breakout in both gold and silver is going to catch almost everyone off guard. Prepare accordingly.
Now this is what I really want to point out:
This is a falling wedge. This is what happens when a breakout occurs. It often breaks upward, unlike the rising wedge which tends to break downward (see DXY above).
We've got a lot of fun starting to unfold in front of us this month. Silver is about to run to new highs and it won't be looking back very often. I don't know how many of you people have followed TF very long, but I successfully called the January bottom and got dang near close to the May raid bottom (which was one wild and unpredictable event!) Here is a visual of what I called and the link to those posts:
January bottom call: http://tfmetalsreport.blogspot.com/2011/01/sour-grapes.html#c6984107088021211792
Now, if only my wife would let me acquire more silver...