Japanese Yen Saves The Day
Tim Knight | Aug 31, 2017 09:16AM ET
At this point, I think if North Korea announced an imminent attack, the market wouldn’t even bother going down temporarily. It would simply commence its post-missile buying, since, after two times now, it probably wouldn’t want to bother with a five-hour selloff.
But the third time isn’t here yet; we’re still bouncing higher from the second. We got aggravating close to some serious selling, but the Japanese yen saved the day. As you can see in the cross-rate below, the US dollar was about to break important support, but boing, it recovered. Until we break 108, things aren’t going to change.
Conversely, gold had its day in the sun, zipping above $1330 ever-so-briefly, because surrendering recent gains yesterday and this morning (I am at least pleased I sold my NYSE:NUGT at an opportune moment). There is still plenty of room for hope in kook-land, however, as long as gold can hold that horizontal just about $1300. That is an important figure both psychologically and chart-wise.
For myself, I’m pinning my wispy hopes on the ES bouncing off the underbelly of its own busted trendline. Today is the last day of the month, which tends to have some peculiar tendencies as we approach the close………but, simply stated, we need to weaken awfully soon or else things get really ugly for the one or two equity bears left.
One last reminder before I go walk the dogs…….tomorrow is the unemployment report.
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