Currencies rally strong! China is upset with printing of dollars…The UN talks of a new currency…Unemployment rate rises to 9.7% And Now… Today’s Pfennig!

Good day… And a Terrific Tuesday to you! A long Holiday Weekend, that was quite good for yours truly! A great tailgate, a great Missouri Tigers victory, 3 of 4 for the Cardinals, a great end of summer bar-b-que at the Butler House, and a

Currencies trade in a tight range again…U.S. Retail Sales are a clunker! RBA’s Stevens is upbeat! Thoughts on Brazil…And Now… Today’s Pfennig!

Good day… And a Happy Friday to one and all! The end of the week… It’s been a tough week for yours truly, as I’ve hobble around in pain all week. But, as I recall, I promised 2 years ago that I would not complain about these things in the future… So! I carry on!

Well… Front and center this morning… The currencies are trading near levels they were when I signed off yesterday morning. They did have a brief rally, after the U.S. Retail Sales data showed some real rot

Good day… And a Marvelous Monday to you! Hereeeeeee’s Baaaaaacccckkkkk… Oh no! Just when you thought it was safe to open the Daily Pfennig and not get lectured on deficit spending… He’s back! Oh well, It’s been over two weeks, first to Vancouver, then on vacation.

We’ve got a lot of catching up to do, eh? Mike and Chris did a Fantastico job of taking the conn on the Pfennig in my absence… So thanks to them… But it’s back to me, and besides a couple of days in San Francisco later this month, I’m all yours! (I bet that just makes you smile like a Cheshire Cat… NOT!)

OK… Rather than beat around the bush this morning, Chris left me this note from Friday’s price action, so let’s go to the Friday round up and then onto today! Here’s Chris!

The currency markets were fairly calm Friday morning, but at around 9:00

In early Monday morning trading in Hong Kong, the gold price did a quick re-test of New York’s Friday afternoon’s low and slowly started working its way higher from there. Gold really began moving to the upside the moment that Comex trading began in New York. The price moved higher in fits and starts until 12:45 Eastern, when the top was in. Since then, it’s been basically trading sideways.

In silver, the price spiked down the moment that Globex trading began in New York on Sunday evening…and hit a low of $11.73 before recovering to unchanged around $11.90. There it sat until 9:00 a.m. in London trading where it tacked on 20 cents…and from that point, spent the next 22 hours within a dime of that price.

I’m still not sure what to read into the fact that the boyz haven’t broken through the 200-day moving average in gold…if there is, in

Gold spent most of Far East and European trading hugging $890…and silver spent the same period within a dime of $12.70. Nothing to see here, folks! Then, shortly before the Comex open, both metals began smallish rallies…and half an hour after the Comex opened for business, it was lights out.

Not only did the dealers pull their bids in both metals, but I highly suspect that there was actually some fresh shorting by the Non-Commercials and Nonreportables [in the COT] as well.

As I’ve been saying for the last week or so, an assault on gold’s 200-day moving average would materialize sooner or later, as a couple of the U.S. bullion banks [JPMorgan (NYSE:JPM) and HSBC USA (NYSE:HBC)] still had huge short positions to unwind. Well, this could be the start. And whether or not they are going to take their sweet time about it…or have it all over and

Editor’s Note: This article has been excerpted from a free issue of Robert Prechter’s monthly market letter, The Elliott Wave Theorist.

The full 10-page market letter, Be One of the Few The Government Hasn’t Fooled, can be downloaded free from Elliott Wave International.

By Robert Prechter, CMT

“Who Will Benefit From The Housing Act?”

This question is an actual headline from a national daily paper. The real answer is: mortgage lending corporations, developers, real estate agents, speculators and politicians. The government is also pledging tax money to providers of “financial counseling” and grants for speculators who want to “buy and renovate foreclosed housing”; in other words, it will hand tax money to charlatans and unfunded wheeler-dealers. But a far better headline would have been, “Whom Will the Housing Act Hurt?” The answer to that question is: (1) prudent people, i.e. …