Euro And Swiss Franc Update

Just a quick update on the Euro and Swiss Franc. A few weeks ago I turned bearish on these two currencies and since then they've sold off nicely. My downside objective for the Euro and Swiss is a test of the lows from last fall which is not that far away.

Gold Ignores Strength In The Dollar

Since November Gold has been trending higher making a series of higher highs and higher lows. If you look closely at the above chart you'll notice something very interesting that has taken place over the last few weeks.

We are all aware of the inverse relationship between gold and the dollar. As the dollar moves lower gold will rally. As the dollar moves higher gold will typically move lower. Notice what has taken place in the above chart between points (A) and (B). The dollar is moving higher and so is Gold! Gold should be moving lower in the face of a rising dollar but it's not. The means that gold is rallying on its own fundamentals and in my opinion is bullish for the price of gold. If the dollar sells off here, we could see Gold breakout above the high from last September. This market is definitely worth keeping an eye on.

Money Continues To Move Into This Group Of Stocks

The stock market has been chopping around over the past two months but the education stocks have been on a tear. One of the reasons as to why money has been moving into these stocks is due Obama's proposed stimulus package. Some of the leading education stocks that I follow can be seen in the charts below.