carrytrade

Metals markets across the board confirming USD bear market

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FX:XAGUSD   白銀 / 美元
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Look to other metals not just PMs.

Trying to give you as much technical evidence as I can for what is one of the strongest fundamental trades on the planet.

People say, we got QE3 and BOJ Abenomics all the way through 2013, why aren't metals going higher?

Well, outflows of yen (and aussie) caused a USD rally. What need is there to own PMs when the USD is rallying?



Now that the yen is considerably more weak and the USD highly valued (relatively)...

and

Now that the japanese own a lot more USD instead of Yen (as well as a lot more US equities),
they will be looking to dump what is overvalued (USD and equities) and buy what is undervalued and protects against the end game..

Which is of course, everyone goes back to real money, and the game of monopoly finally ends (monopoly does take forever though doesn't it?)

Of course the paper metals markets are leveraged just like the currency markets so true price discovery will be difficult to achieve.

Physical commodities should not be able to be traded on margin. PERIOD. It creates massive distortions.

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