Gold and the Dollar, a complete toss up.

Gold and the Dollar, a complete toss up.
December 19 03:59 2018

One thing is almost certain tomorrow afternoon, and that is the Federal Reserve is going to raise rates yet again and likely forecast more for 2019 (why? I am not sure). There are many different views out there, but I am here to tell you the facts.

Raising rates and trimming the balance sheet is killing the market. With inflation non existent, growth deaccelerating, and the dollar screaming higher; raising rates is a policy mistake that even Big Don, the Commander and Chief, can see coming. He has warned Powell multiple times over the past month, and can’t do anything else but tweet on the sidelines.

Powell makes a mistake tomorrow (again being behind the curve) and these are the two assets that you want to be watching.

Gold which happens to be “tapping” the 200 Day the night before Fed day…

And the dollar which has all signs of rolling over but is holding higher lows…

This truly is a complete toss up tomorrow considering many assets are at these SUPER IMPORTANT PRICE levels. The first move is usually wrong, so just wait for the direction. The market will show its hand soon enough and this will likely dictate how we end 2019…

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heyimsnuffles
heyimsnuffles

Just Climbing the Wall of Worry and Picking the Right Time to Get out of the Way. I am a Nuclear Engineer who quit and has studied global and crypto markets for almost a decade.

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