Author Archives: pmontesdeoca

Will Bitcoin Replace the US Dollar?

 

 

 

Summary

The US Senate appears cautiously optimistic about imposing limited regulations on Bitcoin.

Bitcoin identifies demand under $8,400 levels.

If we see a correction in the price of gold to the low of $1,300 or so, it is a great opportunity to add to the long side.

Bitcoin dropped significantly last week after the Chinese government banned foreign cryptocurrencies in its ongoing attempt to rein in Bitcoin and other cryptocurrencies. The EU is still considering what to do, if anything, about such currencies, while the US Senate appears to be meandering toward supporting Bitcoin or at least regulating it to some limited degree. With the market capitalization of Bitcoin standing at about $115 billion, it appears to be far too large an asset for governments to ignore.

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HIGHER INTEREST RATES BULLISH FOR GOLD?

 

 

 

Summary

Our analysis suggests that the US dollar index may be due for a swing rally in the 93.50 range.

Based on enormous global debt and ultra-low interest rates that cannot continue, we are bullish long-term on gold.

For silver, we have come back to a level that is validating the capitulation or completion of this correction, activating buy signals at $16.33.

The US Dollar and Gold

In my last report published on January 29, 2018, on Seeking Alpha, we looked at the US dollar and gold relationship. We anticipated that the dollar had found some short-term support and had the short-term potential to rally up to 92.00 levels while the gold market had reached an overbought position and was due for a correction and a time for a consolidation.

Last week the US dollar index closed at 89.04. It appeared to be building a foundation for some kind

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Is Gold Making The Spring Top?

 

 

 

 

Summary

  • We expect the US Dollar Index to rally backup to 92.00 levels.
  • Gold is overbought and due for a correction.
  • A time for a consolidation is at hand.

Dollar Rally?

One the highlights in the news last week was the world economic forum in Davos. On Wednesday, the US dollar struck a weaker note on the basis of comments by the US Treasury Secretary Steven Mnuchin. He said, ahead of the central bank’s policy decision, that he welcomed the weaker currency when the Euro was firm. The following day, President Trump negated these comments by confirming that he wanted a strong dollar. So there seems to be some confusion in defining the future path of the US dollar as the world’s reserve currency.

Last week the dollar was under pressure on expectations that the European Bank and Bank of Japan would normalize their monetary policies. The market then broke into the next phase of the bear market with Mnuchin’s comments.

If we put aside this political rhetoric, which seems to only confuse the market even further, the fact of the matter is that the US Dollar Index made a new low on Thursday of 88.25. On Friday, the market recouped a good part of the loss from the previous day, closing at 88.89.

The condition of the dollar seems to indicate that the price has reached an extreme level below the mean and that there is a strong probability that from this oversold condition we should see a corrective rally back up to the 92.00 levels over the coming weeks.

Upon completion of this swing rally…

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GOLD AND BITCOIN : INVERSE RELATIONSHIP

 

 

Summary

There appears to an inverse relationship between Bitcoin and gold: one moves up, the other moves down; one moves down, the other moves up.

Based on Elliott Wave analysis, Bitcoin appears to have made a new low and is poised for a move up in the coming week.

The Bitcoin Investment Trust is a margin-free instrument that is traded on the OTC and allows traders with a set strategy to take advantage of Bitcoin’s extreme volatility.

Gold appears to be heading into a bearish period which suggests you should sell gold.

Based on my analysis, you should buy Bitcoin and sell gold in the coming week.

To read more CLICK HERE

 

Is Silver Ready For Takeoff?

 

 

Summary

All indicators show that gold is poised to make a major move up.

Silver has set a firm bottom and is also ready to burst to the upside – although it may move down first – providing an excellent, historic buying opportunity.

Fundamentally, silver is greatly undervalued given its wide range of uses and possible new use in thinner, more flexible touch screens.

Gold

Looking Backward: How Did Our January 1 Report Do?

In this report, I would like to review the monthly price action for the gold market since we published our last report on Seeking Alpha. On January 1, 2018, the price of February futures gold closed at $1309.

To read more CLICK HERE.

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