- It’s Friday the 13th and it is a Friday before a 3-day holiday weekend
- Monday, of course is Martin Luther King Day
- The stock market will be closed in observance of the holiday
- Once again, I guess Friday the 13th was bad luck for those hoping for Dow 20,000
- In fact, the Dow finished the day Down, it was a slight decline for the Dow
- But not so for gold; gold was up again
- The Dollar was actually down again
- In fact, this year is already shaping up to be a mirror image of what everybody expected when the year began
- The Dow is up slightly, about a half a percent; the S&P is maybe up about 1-1/2 percent
- But look at the dollar; the dollar index is down 1%
- In terms of foreign currencies, the Dow is actually down
- The dollar index is mostly the euro
- If you take a look at some of the other currencies, the Canadian Dollar, for example, is up 2.5% so far in 2017
- The Australian dollar is up 4%
- These are some pretty big moves early in the year
- Remember, everybody was bullish on the dollar
- That was the trade, it was so crowded, everybody was in it
- Every strategist that I saw on financial news at the end of last year and early this year
- Was long the dollar, short the Aussie, short Canada, short the euro, short the yen
- Meanwhile, all these currencies are going up
- I think they’re going a lot higher and I think the shorts are going to lose a lot of money
- Take a look at gold stocks
- Gold stocks are up about 10% so far in 2017 only 2 weeks into the year
- This is already a much stronger start for gold stocks than we had last year
- And of course, last year was a great year for gold stocks despite the fact that they sold off toward the end of the year
- Based on all the hype surrounding Donald Trump and all the great economic growth that we are going to get
- And how the Fed is going to be raising rates even faster and the dollar was going to be even stronger
- I knew all that was a bunch of nonsense
- People still believe it, but the markets are already showing it to be a false paradigm
- And most of the Wall Street strategists are going to once again miss out on these opportunities
[powerpress]
