Europe warns of another decline
By Colin Twiggs
November 24th, 2011 4:00 a.m. ET (8:00 p:m AET)
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Dow Jones Europe Index is headed for a test of the band of support between 200 and 205. A 63-day Twiggs Momentum peak below zero would warn of a strong primary down-trend. Failure of primary support would offer a target of 150*.
* Target calculations: 205 - ( 260 - 205 ) = 150
Dollar strength continues
The Dollar Index is headed for a test of resistance at 80. The brief dip below zero on 63-day Twiggs Momentum suggests a solid primary up-trend. Breakout above 80 would offer a target of 85*.
* Target calculations: 80 + ( 80 - 75 ) = 85
Gold falters as the dollar strengthens
Spot Gold is headed for another test of the lower trend channel on the weekly chart. Failure of support at $1600 would warn of reversal to a primary down-trend; follow-through below the September low at $1550 would confirm. A fall of 63-day Twiggs Momentum below zero would also warn of a reversal.
Penetration of medium-term support at $1700 on the daily chart of spot gold is not a strong signal, but follow-through below the recent low would indicate a test of primary support at $1600. Failure would offer a target of $1400*.
* Target calculation: 1600 - ( 1800 - 1600 ) = 1400
The NYSE Arca Gold Bugs Index has been ranging between 500 and 600 for some time. Decline of 63-day Twiggs Momentum below zero suggests long-term weakness. Reversal below primary support at 500 would signal a primary down-trend — and a negative outlook for gold.
When national economies suffer a downturn, governments should borrow and spend money to boost economic activity. Part of the proceeds of the resulting economic growth should then be used to repay the debt.
~ John Maynard Keynes
(He failed to answer the question: what if there is no "resulting economic growth"?)