Slooooooooooow out there.

Things are slow in the markets. No one can figure out or understand why the markets are doing as well as they are. Every economic indicator is pointing down and the market has priced in a chicken in every pot and a Buick in every garage. However the market can remain irrational longer than the average person can remain solvent so here goes my current thinking. Right now things hinge on the dollar. I thought the dollar was going to break down and move below the moving average line but a late week rally saved it. Dollar chart below.

The dollar still appears to be headed down but hasn't crossed the moving average line so we'll have to see what next week brings us. A weaker dollar means a stronger stock market, stronger commodities, and stronger gold. The next chart is the proxy for the Dow which is DDM. As you can see it's doing nicely. 

The next chart is the proxy for oil and gas which is DIG. Chart below. 

 Last but not least is the proxy I use for the Gold market which is GDX. GDX is an ETF fund for the gold mining stocks. It has just generated a buy signal so I will buy some Monday. I'll post the results from time to time assuming I don't get stopped out right away.