Golden Minerals Company

Hey Sketch, no doubt the headlines continue to be bogus and completely unrealistic. Today's jobs report, even though quite poor, is completely rigged. The USD should be down strongly today on the payrolls data and on the following major news:

China will allow companies to use the yuan to settle cross-border trade and let them keep their entitlement to export tax rebates, seeking to reduce the reliance of importers and exporters on the U.S. dollar.

The People’s Bank of China will encourage banks to offer yuan settlement services from today, the bank said in the regulations published on its Web site. Transactions inside China will take place in Shanghai and four cities in southern Guangdong province, including Guangzhou and Shenzhen, while those outside China will occur in Hong Kong, Macau and the Association of Southeast Asian Nations, it said.

“It’s China’s first step to make the yuan global,” said Shi Lei, an analyst in Beijing at Bank of China Ltd., the nation’s largest foreign-currency trader. “It will protect exporters from swings in exchange rates and boost the yuan’s role in the world currency system.”

Link: http://tinyurl.com/mcgxry

Also, as shown in the first chart below, the USD has been walking along the cliff's edge for about a month. This coincides with the cartel's obsession with $930 gold as this level has been assaulted without fundamental reason for weeks now. Gravity will soon take its toll on the USD.

The last chart below is of the DOW and it shows that key moving averages have been penetrated to the down side today. Perhaps this marks the end of the fictitious "green shoots" rally.

All the best - VHF

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Currently, the Dollar is in a six week trading range between 78.33 and 81.37. Short term momentum indicators are no help. MACD, RSI and Stochastics essentially are neutral. Intermediate trend is down. Chances are high that the intermediate down trend eventually will resume, but timing is unknown at this time.

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Short term technical signs of deterioration in U.S. equity markets are likely to appear this morning. The Dow Jones Industrial Average is expected to open below its 50 and 200 day moving average. Volume is still decreasing.