us$/oil/gold breakdown

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    President Bush delivered a very powerful State of the Union Address last night. The Iraqi election results have confirmed that U.S. foriegn policy is on a bullish track, many in the crowd held up finger tips soaked in dark ink. The central themes of the speech switched back to domestic financial issues and it was interesting to watch the US$ take off almost immeadiately (Bush does what he says). US$ DXYO has started a very bullish breakout with targets at 85 higher to 88-89. The Euro has topped and is slip sliding away.

    Gold took a massive hit down US$5. Target range is between $388-412 which will violate the long term bull trend in gold. IMHO we will see very heavy liquidation going into the next few weeks. Oil bulls have lost control and shorts/bears win oil headed to US$35-45?? range.

    This is highly TOXIC to Aussie resource specs/producers. The Ides of March are coming and am expecting a lot of liquidation selling into a thin market. Bear alerts will be posted.
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