Direxion Daily Gold Miners Bull 2X (NUGT)

[mannken]

Rate hike never happen, Gold 1k possible, imo

You'll notice every time the stock market loses a little upward momentum, a Fed official will come out of the woods and make a statement about rate hikes, or, EU/JP will come out with QE comments.

For the US, this is the artificial rate hike language game to keep the dollar strong, and its been going on for quite some time.

Pull up a dollar chart against the basket of all other currencies, a rate hike will obliterate all other currencies that are already crushed, this would spell economic trouble for the US.

Irregardless, the dollar will continue to climb as EU/JP continue to move into the abyss of negative yield rates, pushing money out of those markets into the US dollar and stocks, as the US will be the only safe place to park money.

A prolonged deflationary environment is upon, which should keep pushing commodities lower, its recently been confirmed by a US senator that Central Banks trade S&P future contracts, with CB power to print unlimited money, they can effectively control market direction by printing money to backstop any margin related losses.

All my opinion, with that said, Gold could see 800-1000, but I'm willing to bet that global economic conditions are raising concerns, keeping gold around 1200 for the short term, as a hedge against Fed policies and not inflation.

I'm looking for a miners rally in Jan, as Fund managers start to pick up beaten up sectors & tax loss selling done. Then as we move into the year, more of the same, new S&P/dollar highs, more pain for miner stocks and gold under pressure from deflation and Fed/CB's.