Will the dollar continue to drop?

While the equity markets didn't do much today after the fed meeting minutes were released, there was an interesting move in the dollar. With the Fed acknowledging worries about housing and a slowing economy, the markets reacted by pushing bond yields down and bond prices higher. This also caused Gold and Silver to tick up as the dollar was weaker.

Here is a 60 minute chart of TLT showing the move higher after the minutes were released.


Check out how Gold as shown by the GLD etf has correlated with Bond prices as shown by the TLT etf the past few months. This shows how gold has been closely correlated to fluctuations in the dollar. With TLT possibly moving higher, Gold and silver may follow suit the next few days.

With that in mind I am looking at possible moves in a couple miners.

Silver Wheaton Corp. (USA) (Public, NYSE:SLW)
Here is a chart of SLW possibly turning at the lower band. There is probably a high chance of failure, but if it bounces here, then it could be off to the races.


Goldcorp Inc. (USA) (Public, NYSE:GG)
Goldcorp has held up better then SLW recently, drifting back to the 20sma. It could attempt to breakout soon.


I'm a little mixed on equities right now, as although some of my positions held up well today, I couldn't help notice weakness in leaders like AAPL and RIMM today. We'll see what tomorrow brings.

Good Luck,

DT

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