GOLD: hot or not?

Of course Gold is on a bullish trend but is it really so hot?. See this chart where it is priced in euros to assess how much of its last explosives runs have been propeelled by a weak USD:



Now we couldn't be surprised if some more correction is under way...

Interesting coference from Antal Fekete about Gold and Financial markets (thanks www.simplenorisk.com)

Seeking the unobvious (updated)

Turning point time guys. This last week has been really shocking but at least set something clear: Bulls are still in total control of this market.
I will post later my vision about different time frames and try to put all the pieces together in one picture. Meanwhile I brought this short term charts. The only objective is to balance the astonishing impresion that SP500 and some other indices gave us on Friday's close. I think some other indices and instruments showed less strength, at the close or in previous 2 days. This makes me think that on Monday/Tuesday we can have some correction (finally). After that correction I expect more buying pressure.
So this is bear's short term tiny hope as far as I can see :)


SPX- OIL/GOLD spread


SPX- DAX/SHATZ spread


SPX vs. USD comparison



6E . Euro future closing on Friday.



Nasdaq 100 future . See previous chart

Currencies: who should I trust in?

Recently there has been some talking about currencies since we experienced a very short term decoupling from Euro and equities which normally go together. Moreover, many traders refer to USD indices to look for clues since in the long run it is inversely correlated with US stock markets. Also JPY played a very important role during last bull market since it was the currency used by carry traders to benefit from the lower Japanese interest rates.
I myself like to watch currencies for confirmations or sometimes early signs of moves in equities but to clarify a little their behavior I pulled these charts out so we can see how these instruments played during the last years and ideally how to take advantages of them in the future.



Close up view:




So, in general I prefer to watch the Euro future (or its correlative at Forex: EURUSD ) for clues. Also EURJPY is very interesting as a leading indicator, I will try to post some charts later.

Euro future setup

Interesting, though risky entry at Euro future.

Bulls best friend

Ok after a super bullish day when ES reached 1000 pts. is time to see some causes. Regardless of the intrinsic strength of equities, one factor cannot be overlooked: weak USD propelled this rally just when it was going exhaust. Accordingly, its counterpart, the Euro future, gave a lot of fun to some fellows traders (congrats Canuk and EminiAddict!)
Here is the EURUSD chart and some reasons to believe there is more room to rise after some consolidation. Enjoy

Bulls best friend: