Indicators Worth Watching: Bullish Signs for Metals?
Andrew Horowitz submits:
Over the past few weeks, the U.S. Dollar has been strengthening. This is in direct response to the Eurozone’s problem with the PIIGS and a flight to safety. In reaction, metals have been drifting lower, as have been most commodities.
Yet last week we finally saw the correlation break (dollar up, commodities down). EU responded with a helping hand to Greece, that somewhat calmed investors’ jitters. If the U.S. dollar begins to drift lower, there is a good possibility that there will be a short-squeeze reversing the recent trend for gold (GLD) and other metals / commodities.
Tags: bullish sign
Investing, Long Term Investment, stock market | admin February 17, 2010
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