Cuts Like a Knife

This wouldn't be the first time
Things have gone astray
Now you've thrown it all away
--Bryan Adams

We achieved resolution in last week's head and shoulders pattern in the US Dollar, as the Dollar Index knifed thru 84.5 earlier this week.

Today, the Fed cut the fed funds rate from 1% to an unprecedented .25%. To calm fears that the Fed is running out of ammo as it approaches the famed 'zero bound,' the third from bottom paragraph in today's FOMC statement essentially stated that the Fed is willing to print money to buy all kinds of financial assets.

The USD was eviscerated on the news. In an email to Fleck, Jim Grant suggested that the above mentioned paragraph should have been labeled "Gold 36,000."

Indeed.

I've been a buyer of gold and oil at these levels.

positions in gold, oil