US Dollar, bullish or Bearish?

By that, I am referring to the US Dollar, as portrayed by the USDX. The greenback is once again knocking on the door at the top of a nearly year long trading range. That door is up near the 81.65 level. The bottom of the range is near 79. 

The week is not over yet but this far the last month has seen the Dollar firm and garnering strength as more and more traders/investors are coming around to the view that the Fed will be the first among the Western industrialized nations to raise interest rates. Today’s Service Sector ISM reading did nothing to disabuse them of that notion as it was very strong; stronger than expected in actuality. 

Here’s the chart… 

If the Dollar can manage to finally put up a Weekly CLOSE above that zone noted, it can easily run another full point and should be able to even make a push to 83. We’ll see what we get come Friday of this week.

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Chart of the Day - Chipotle Mexican Grill (CMG)

The Chart of the Day belongs to Chipotle Mexican Grill (CMG).  The fast food stock hit another All Time High today.  I found the stock by sorting the All Time High list for new high frequency in the last month.  Since the Trend Spotter signaled a buy on 7/22 the stock gained 3.41%.

Chipotle offers a focused menu of burritos, tacos, burrito bowls and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere. Through its vision of Food with Integrity, Chipotle is seeking better food not only from a variety of fresh ingredients, but ingredients that are sustainably grown and naturally raised with respect for the animals, the land, and the farmers who produce the food.
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World Events Mean Deflation First, Then Inflation

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John Hathaway and Doug Groh: Buy Gold Like It’s 1999

theaureport.com / JT Long / August 4, 2014
The overall markets are exuberant. Valuations rise regardless of value created. And gold is conspicuously not at the party. All of this sounds very familiar to John Hathaway and Doug Groh, portfolio managers of the Tocqueville Gold Fund. It is like 1999 all over again. In this interview with The Gold Report, the pair of fund managers shares their top 10 picks for a diversified portfolio that minimizes risk while maximizing the upside they see coming sooner rather than later.
The Gold Report: In a 4th of July investor letter, you wrote that the precious metals complex, both mining shares and bullion, appear to be in the process of completing a major bottom, and you’re more comfortable with the proposition that the downside potential has been fully exhausted. What are the signs that it’s really turning this time?
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