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What To Expect For The Week 8-18-2008

Again this past week the dollar gained some strength. The gain was just over 2.5% against the slue of currencies. Gold and silver fell hard this week because of the spike in the dollar.
Gold and silver prices plummeted this week on a spike in the value of the U.S. dollar. During the the week gold lost 7.6% while silver shaved off 12.5%
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The markets have benefited from the strength of the dollar and as long as our currency strengthens it will get better. I’m not sure which way to look at it, but I’m an optimistic bull and expect good things.
The DOW was up for the week, not much but it was up. It started Monday at 11,681. and closed at 11,659. As for the NASDAQ and the S&P 500 were up also, but not enough to even mention.
Commodities and Energy stocks are to be kept in focus for the week ahead
For the five trading days ending Thursday, Aug. 14, the U.S. dollar index gained 2.85% against the basket of major currencies. Over the same period gold cast off 7.61% of its luster while the sliver meltdown sliced off 12.50%. It seems that the two have entered the bear market territory.
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If it wasn’t for the action in the dollar and oil, the markets would be pretty flat. The markets only do good if there’s downward pressure on the price of oil. When the American economy removed the relationship between the dollar and gold, it put too much emphasis on oil and it’s effect to our economy.
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This is one of those weeks where I’ll just say that we’ll have to see what happens. It does seem that the markets are finding their bottoms and in due time will be back on track for the bulls to come out and play. Keep an eye on stocks that are effected by the price drop in oil. As for stocks that are tied to the dollar, start looking for your entry point into those positions. The Olympics will end next weekend and China should be getting back on track to their growth. It’s been hard to see what they’re doing when they’re too busy showing off their stuff.

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