Friday, September 26, 2014

So What Was the ECM September 2014 Turning Point?

The 2014.675 turning point in the Economic Confidence Model seems to have pinpoint the shift in capital flows. The US dollar is rising and this may yet move into a serious rally that will have the politicians in turmoil have some even talking about protectionism again since morons never learn a lesson. You have to understand that a rally in the dollar is NECESSARY to turn down the economy for 2016-2020.

Even gold has fallen for two weeks since the turn in the ECM. Gold’s Benchmark was 9/15 and that producing a low warns indeed we will see lower prices ahead. The second part to the metals report is Silver. This covers silver in all the major currencies, the silver/gold ratio, and the conclusion for the targets in time and price with respect to gold and silver. The third part is Platinum, Palladium, and Copper. The gold promoters just can’t get it through their head, sometimes there are bigger issues to consider like the global economy and where do the metals really fit in.

The Euro is trading at the 127 level and it is sinking rapidly. We have critical support at the 122-123 level and a weekly closing below 122.44 will warn we have serious problems ahead for Europe. The Monthly Bearish Reversal lies at 125.52 and is September closes below this level, watch-out for November. Even a monthly closing BELOW 129.78 will be a sell-signal for Europe.

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