Rainer's Investment Insights

USD retraces 61.8% of total downside in 2010-11 Currencies have played a crucial part in the game of asset rotation in recent years. Their movement provide insight into longer term trends that help assess medium term opportunities in the financial markets. The USD is now at a crucial level that just might dictate the next turn of events: We are at 61.8 Fibonacci Retracement level of the complete downside move that lasted from first week of June 2010 to first week of May 2011. With the RSI indicator extremely oversold, after a momentous rally these last few weeks, chances are that at this level investors are offered a few choices. Gold prices also have been languishing as every attempt to rally has been thwarted by investors' preference for currencies, and we have seen markets taking quite a plunge during May. Time to Asset Rotate? SELL THE DOLLAR AND ROTATE BACK INTO RISK ASSESTS? I would be very surprised if investors did not at least give a good try, European labour pains

Short Term Market Anxieties  Since early May, financial markets, globally, show only one direction: DOWN. In a dominant show of foreign investment changing hands (from strong to weak), markets find 100% correlation - for a short term.  The downward pressures were worst in the last 2 weeks. NASDAQ & BOVESPA, two leaders on the way down STI and SWISS, less downside but currency weak Light Glittering at the end of the tunnel?  Punters are finding temporary solace in gold now. This is where it gets intriguing (...goes against the established pattern).  Last week, as many markets suffered their worst days YTD, gold suddenly raced up by some 5% (green arrow) even against a strong USD. 1-Year View: Gold's volatile path with winners and losers aplenty! Ever since the summer 2011, gold prices sold off in huge, volatile steps from the lofty USD 1800 range to below USD 1530 just last week. The remarkable comeback in the last 3 days says something about inves