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Ten Bold Predictions and Big Trades for 2010

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There's no time to lose because some of these trends have already begun!

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Nobody can see the future but I'll take my best stab at it -- here's hoping I'm not just sticking my foot in my mouth. Well, it wouldn't be the first time.

The following predictions should hopefully be very controversial -- just like many of the predictions in my book Discover the Upside of Down.

All of my contrarian predictions are based on how I see things setting up the weekly charts in stocks, oil, gold, currencies, commodities, foreign markets, and bonds. I'll also throw in some specific possible catalysts that could ignite these very powerful setups as they appear now.

For Grail ETF & Equity Investor subscribers I'll be sending this out again in a couple weeks with Grail Charts attached showing past and present grail signals. Some of the current grail signals will confirm and others will contrast my predictions for now, but may confirm later.

Prediction Number One: The US Dollar won't crash before it makes a giant double bottom on the weekly charts in 2010.

The weekly chart today look a lot like it did in March of 2008. The dollar hit lows in March 2008 then went sideways until it broke out in August 2008 at 75.60 -- when our indicator gave us a buy signal.

The dollar continued to rally all the way up to 91.47 in March 2009 before giving us a sell signal.

It seems the dollar is setting up now for a powerful short-covering rally accelerating into the first quarter of 2010 before it resumes its downtrend once again.

With both individual investors and professional traders raging bears, why wouldn't the dollar rally?

Everyone and their mother is short the dollar, so we look for the unwinding of this Federal Reserve-created carry trade to take the dollar higher. (See also, The Decoder: Carry Trade)

Intermediate and long-term, by the way, I'm very bearish on the prospects of the US Dollar. In fact, I can see the dollar getting cut in half after the short covering rally ends. (See also, Ben: It's All Part of My Master Plan)

Prediction Number Two: Gold in 2010 will be looked upon like the 1999-2000 NASDAQ.

When Alan Greenspan flooded the economy with easy money in the late 1990s, the world went into a wild frenzy buying US technology stocks in 1999.

Gold and gold stocks will make a blow off explosive final run in 2010 from "helicopter Bens" flooding the globe with liquidity. The final move up in Gold and Gold stocks will look just like the NASDAQ run from October 1999 until the March 2000 blow off top.

Today's weekly chart on Gold looks a lot like 1999 NASDAQ. Gold is also set up just like when Gold crossed 1000 in March of 2008, so Gold could have a similar nasty correction before that giant dot-com move up.

By October 2008 Gold got trounced to a low of 692 an ounce. We believe the next big correction in Gold will also prove to be a wonderful buying opportunity.
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The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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