Yesterday KWN warned about the extreme readings in the U.S. dollar and today all hell broke loose to the downside in both the dollar and 30 year bond market.
Below is the chart King World News published yesterday warning about the extreme condition in the U.S. dollar market.
This Chart Of The U.S. Dollar Will Blow You Away!
The chart below is stunning. It shows Rydex Strong Dollar Assets and the fund flows are now at extreme excessive optimism readings for the dollar (you click on the chart below to enlarge).
KWN also published the following from Jason Goepfert at SentimenTrader just 3 days ago regarding the gold market: “The smart money is long gold to a degree not seen in a decade (see chart below).
Large hedgers are nearly net long the metal, surpassing all other extremes seen in the past 10 years. Gold has responded well to these extremes in the past decade (not so much prior to that), so it’s a positive indication for a medium-term rally.”
This was also from the KWN note 3 days ago:
It is also worth noting that the chart below shows how sentiment in the gold market has moved back to one of the most historically excessive pessimistic sentiment setups in the past 25 years (see chart below).
The bottom line is that there are still extreme bullish readings on the dollar and extreme bearish readings on gold. The action today may well be indicating a turn is at hand in both markets. Only time will tell. ***ALSO JUST RELEASED: Today’s Panicked Trading Produced Something We Haven’t Seen In Many, Many Years CLICK HERE.
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