Tom Fitzpatrick is the technical analysis guru at Citi. He is widely known and quoted.
He presents a strong US$ strengthening theme and concern that US equities are over valued.
Here a couple of his most recent reports. Fitzpatrick has turned bullish on gold and forecasts $3000 to $3500 an ounce for 2014. I arrived to a very similar view a month or two ago and wrote at the time about the confusion that this twin set of events would create for the auto allocators that depend on these historical correlations and inverse correlations. This event, if or when it occurs, will create much confusion and confusion in financial markets equals extreme volatility as a price discovery process takes place. And price discovery and volatility equals, in turn, a deleverging as participants reduce balance sheets until clarity emerges from the price discovery process.
Anyway without more delay here Fitzpatrick and his team.
And here his latest report below. He forecasts a likely strengthening move by the US$ lead by the $ vs the Eur, note. Draghi’s latest comments and data look at odds for this although ‘off risk’ capital flows do look likely to support the view. When/if the ECB do finally press the ‘OMT’ button it would send the move into over drive. Without more delay here his latest report:
All the best
Rich