THE LOONIE WATCHER’S COMMENTARY FOR FEBRUARY 13, 2006
The market close on February 13, 2006, showed that the market conditions influencing the Loonie and the $USD
are in flux since from our last commentary (Feb 10, 2006)
THE LOONIE
The Loonie appears to be running out of sellers. Today’s price action indicates that the commercials
are stepping up to the plate, as their buying was what stopped the short selling. The Loonie has now become a low risk trade,
as its speculative premium has been reduced by the recent reaction.
The Loonie’s near term outlook is a trading range, as the market digests the latest news.
THE $USD
The $USD exhibited its first real selling since this reaction began. The MOMO (momentum) traders were in rout
by the close. The short sellers have been run out, and the tank is out of gas. Today’s price action showed that the
commercials won’t play at this price level.
The short term outlook is a probable trading range until a tradable direction materializes.
SUMMARY
The financial markets are confused by today’s close price for gold. The ramifications are ominous for
some sectors of the economy. The currency markets will have to put their thinking caps on to predict this event’s implications.
Yes, the SS Goldbrick was hit by torpedoes sometime today. Investigators are being rushed to the scene for
a damage report. The SS Goldbrick has had to return to port for repairs. Should the Goldbrick need extensive repairs, her
precious cargo of fuel for the precious metal’s moneymaking machine won’t de delivered. That would result in an
engine shutdown due to the lack of fuel. The managers used to keep big inventories of fuel, but the price level of crude oil
has forced them to cut back their inventory of BlackGold!
It’s too early to forecast the effect, but serious damage has been done to the Goldbrick, and smart
money will watch this carefully prior to committing.
Wayne N. Krautkramer onlypill@cox.net
https://onlypill.tripod.com/thelooniewatchercopyright2006bypitagorasinternacionalsa
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