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J&M Coin & Jewellery Ltd.
127 East Broadway
Vancouver, BC, V5T 1W1, Canada
Tel: (604) 876-7181
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Articles and Commentary

US Dollar, Gold and SP500 Trend Report
By Chris Vermeulen
April 27, 2011


The dollar continues to control the equities and commodities market with its inverse relationship to them. The past couple years it seems that the dollar does what it wants and the all other investments move according to their relationship with rising or falling dollar prices. Most of you know that I follow the dollar very closely. And each morning I provide my analysis with what I feel will take place throughout the session or next 48 hours. In Today's (Wednesday's) pre-market trading analysis I talked about the strength of the equities market in the past few sessions and that it looks as though it still has more power behind it.

Dollar Index 60 Minute Chart

Taking a look at the US dollar I noticed this morning that it was pointing to even lower prices and that it would likely happen today. It was only a few hours later that the dollar went into a free fall blowing through my downside price target of $73.30. It was this sharp drop in the Dollar which sent stocks, silver and gold soaring higher yet again in our favor.


Equities Market -- SPY 60 Minute Chart

Stepping back a couple hours before the US dollar dropped in value sending stocks higher I did see fear creep into the market as traders started selling their shares and buying put options expecting the stock market to fall. When I saw this I got exciting because higher stock prices are usually just around the corner which they were! That's when I sent an update out subscribers noting we should see some fireworks very soon.

While I am bullish on the stocks and metals at the moment and are long in several positions I am starting to see signs that a pullback is becoming more likely each trading session. This is when money management is important. I do not want to give back to much profit, but I must make sure we lock in some gains during times when the market is overbought like this.


Conclusion:

In short, we continue to ride the trend of higher stock and precious metal prices as the US dollar spirals down out of control. Our SP500 positions are deep in the money and we continue to ride it for all it's worth raising our stops as we go. The big question is if the Sell In May, and Go Away will take shape or not. I'm thinking it will as when the time is right I will be looking to short the market.

If you are not yet getting my pre-market chart analysis be sure to join my trading service at http://www.thegoldandoilguy.com/free-preview.php


TheGoldAndOilGuy.com is owned and run by me (Chris Vermeulen), an individual gold trading specialist. After sharing my gold analysis with friends, traders and financial advisors, I decided to make TheGoldAndOilGuy.com my full time job in 2003. This service was designed from the ground up to help individual traders who want to focus on consistent, accurate and profitable trades. Over the past ten years my strategy has been refined to one golden trading vehicle which has an almost 100% accuracy. The GLD (DGP and DZZ) gold exchange traded funds are now the most accurate trading vehicle I have seen, so it's my vehicle of choice. Members of TheGoldAndOilGuy.com not only get to trade my signals, but see my live trading charts and ask me all the questions they wish. My goal is for all of us to make money and have fun in life.


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