I have been trading G.O.D for 6 months now, with great success and I expect it will continue.

Of course I am not really trading “GOD”, I am however trading what it stands for.

G – gold
O – oil
D – dollar (short)

Dollar-

The Greenback is making new 2009 lows as I write this, and I don’t see any major reversal in the near future. The FED continues to lie to you about “green shoots”, inflation, GDP numbers, and that we will see a recovery in the near term.

They have been spouting the same mumbo-jumbo since 2008 with little to no change. I am a strong believer that actions speak louder than words. So, ask yourself “Why isn’t the FED raising rates if they believe a recovery is near?” The answer is, there is NO recovery in the near term.

GDP numbers are a farce. After releasing to the media that the economy contracted by -1%, they corrected themselves (quietly of course) that the economy actually corrected at -1.9% (aka twice as bad). What our friends in the media failed to discuss is that stimulus was responsible for 3% growth. So, GDP numbers are closer to -5%, which is the real reason the FED will keep rates at zero, putting pressure on the dollar. There is already talk of a second round of stimulus and we haven’t even spent the 1st one!!!

Free money from the FED, coupled with an epic level of government and consumer debt, false inflation numbers and the potential of other countries to raise rates does not bode well for the dollar. Heck, I almost forgot about the Chinese and Russians openly discussing a new world currency to replace the dollar.

Will the dollar stop falling? No, at least not for a while, possibly years.

Oil -

Given my dollar thesis, anything pegged to the dollar will rise.

Below is a chart of USO which tracks oil taken from TradeKing. Visit www.TradeKing.com for $4.95 trades, as well as great trading software.

The 4th wave cannot overlap wave 1 (see the red line splitting the graph in half). The 5th wave should surpass the 3rd wave, which it looks poised to do.

My short term target for USO is $40.92, at which point you might want to take some profits.

Gold –

I follow the ticker GLD which tracks Gold. GLD has been making a giant base and is currently in the “handle” of a “cup with handle”. The formation started back in Feb. of 2009 and is poised for a breakout.

Your buy point is $96.59.

Assuming the dollar and our government policies do not change (things in motion tend to stay in motion) gold will take its 3rd shot at $1000 and I am betting it breaks.

I may not attend church on a regular basis, but I do believe in G.O.D.

Good investing to all!