Tuesday’s Trading – 11/17/09

Gold Going Parabolic?
Is it just me, or does the GLD daily chart look like it’s going parabolic? Back here, on November 3rd, I wrote:

“On Larry Kudlow’s CNBC show Tuesday night, Steve Leisman reported that high government officials said that they are content with the dollar’s “orderly” decline.”

And that was the end of the dollar rally. If you look at a chart of the DXY dollar index, you will see that it was all down hill from there, and the end of the stock-market’s correction. Since then we’ve heard from President Obama that he wants “more exports” which means smashing the dollar some more. And on Monday, Chairman Bernanke said that he was paying attention to the dollar, but doing nothing about it, and that asset bubbles were “hard to identify.”

The USA is following a “crush the dollar” policy, and the Fed sez that it’s turning a blind eye to asset bubbles. Why wouldn’t gold go parabolic?

Bernanke quote:

“It is inherently extraordinarily difficult to know whether an asset’s price is in line with its fundamental value…”