Dear CIGAs,
The US dollar has topped all of its bear market rallies by up-slanting head and shoulder formations. It looks like it has done it again.
A low in June according to Armstrong is more meaningful than any other direction or time combination, indicating the high probability of the gold price trading at $5000. Alf holds out the possibility that an overrun in this leg takes gold to $3500. The reverse head and shoulders formation inverse to the US dollar reads $1270. I anticipate $1224 and $1650.
Click chart to enlarge in PDF format
Jim Sinclair’s Commentary
Green Shoots have turned out to be just more spin and BS. The greater mirage has been the US dollar rally on orchestrated hot air post G8.
IMF says dollar adjustment might be needed
06.22.09, 06:39 AM EDT
PARIS, June 22 (Reuters) – An increase in exports is needed for a sustained recovery in the United States and this may require an adjustment in the value of the U.S. dollar, IMF chief economist Olivier Blanchard said on Monday.
‘For the US, it is absolutely no question that a sustained recovery has to come from a large increase in exports, that may not be very easy to do. This may require fairly substantial adjustments in the dollar,’ he told a conference.
Jim Sinclair’s Commentary
Israel will do whatever they deem necessary for their survival.
Jewish Leader: Obama May Be ‘Most Hostile President to Israel’
Monday, June 22, 2009 11:53 AM
By: Ronald Kessler
President Barack Obama’s refusal to take a stand on protests in Iran stands in sharp contrast to demands he has made on Israel, Morton Klein, president of the Zionist Organization of America, says in a Newsmax interview.
“I think he should take a strong stand to support the protesters in Iran who want to transform that society into one that promotes democracy and human rights,” Klein says. ”But while meddling in Israel’s affairs and making specific demands, he explicitly states he refuses to meddle in Iran’s policies and has said almost nothing.”
Klein says leaders of Jewish organizations are rethinking their support of Obama in light of his attitude toward Israel.
“There are many leaders in the organized Jewish world who have privately discussed this issue with me, and say they are deeply concerned about Obama’s actions and policies toward Israel, and now they’re rethinking their support for Obama during the campaign and the election,” says Klein, whose organization of 30,000 members is the oldest pro-Israel group in the country.
Based on the president’s speech in Cairo on June 4 and many of his foreign policy appointments, Klein thinks Obama “may become the most hostile president to Israel ever.”
Obama’s speech was “inimical to Israel and supportive of the stream of false Palestinian Arab claims concerning Israel,” Klein says. “He is relentlessly pressuring Israel while applying virtually almost no pressure on the Palestinian Authority to fulfill its written obligations.”
