This morning CITI came out and let everyone know that they sold their $USD positions fearing a sharp decline after the $USD just had an incredible week (last week). Upon CITI's alert that they had sold all $USD longs, the $USD slipped this morning around 8 a.m. and Gold and Silver (as they typically have an inverse relationship to the $USD) jumped, but the move didn't last long as $USD was bought (buy the dip) and gold and silver faded back down.
I think what is going on here is a bit larger then the knee jerk moves on CITI's news this morning, and smart money doesn't disclose their positioning unless there's something to gain form it, whether long gold already or looking to pick up $USD at cheaper prices, whatever the case, CITI was out of the $USD before making that known to the world this morning.
As far as the $USDX, there have been recent shorter term, but especially larger / longer term charts that have shown something brewing, I suspect part of this is CITI's selling, but I doubt they are the only one to take gains in to last week's $USD performance.
$USDX 30 min longer term chart in line for most of the gains last week with some late week distribution, likely partly CITI as well as others.
The longer term trend in $USDX shows an in line status running in to last week's fantastic performance, we did see some short 5 min negative divergences that $USDX reacted to negatively (price) , but this is suggesting something quite a bit bigger is looking on the horizon for $USD, right in line with CITI's disclosure,
they don't offer up this information freely unless it serves some purpose.
At the same time the gold futures 30 min chart has a very strong leading positive divegrence, almost as if there was rotation out of the $USD and in to gold. We saw some evidence of this last week, in fact enough to start a NUGT trading position and then add to it a bit.
The Gold futures 4 hour chart and recent strength with a leading positive divegrence.
The GLD 60 min chart looks similar recently as well, leading positive.
As does the 30 min chart of what looks like a head fake move which are commonly seen just before a reversal which is also interesting given its timing and CITI's disclosure.
GLD 15 min chart..
GLD and GDX (gold miners or NUGT 3x long gold miners) have a tight correlation.
GLD 5 min looks like a head fake move with a negative divegrence, not huge, just a 5 min to turn GLD down and break below recent/local support, running stops?
If so, the positive divegrence shows them as being accumulated.
NUGT's 5 min chart looks almost exactly the same except it didn't break the local support zone, however it is in leading positive position.
GDX's 5 min chart is leading positive as it has pulled back.
These have been very difficult assets and rightfully so as they have largely remained lateral for months, not the kind of asset you want to trade, but with recent $USD developments, it looks like something is getting ready to happen here, thus I will keep the NIUGT long in place for the time being, if there's an area in which it looks like a good add-to, I'll post that as well.
NUGT showing the same pullback negative divergence and positive in to the pullback as GDX, NUGT 5 min and GLD.
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