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Dollar Pounded, Euro Passes $1.50 For First Time Since August 2008, Market, Of Course, Higher
Down pre-market got you down? Throw a little POMO and sprinkle a dash of mangled dollars, and voila: another 52 week high.
And a reminder of what is happening to America's middle class, best represented by South Park:
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There's a Story at the top of the page What's Wrong With America Part 1.
Does this qualify as part 2?
Gold not buying it so far. Watch for EURUSD reversal.
Methinks as the money spigots start to contract ever so slightly some asset sales are necessary to keep the rocketship flying. Just my $0.02 but I think thazwassup wif gold lately.
Are we lookin' at the same gold?
Since 12th Oct., DXY has gone from 76.6 to 75.135 today and during that time Gold has gone from $1055 to $1058 right now - a PIDDLY THREE DOLLARS. Can somebody please explain this?
Someone (Gold?) smells a skunk in the wood pile and doesn't want to be caught on the wrong side of the trade. Lot's of non confirmations today.
Very interesting.
At around 10:10 I realized the dollar had slipped, so I thought I would goto ZH, and what do I find? Tyler already has it covered.
Tyler, you need to take a rest... this blog stuff can kill ya 24x7., anyway, great job ZH as usual
I heard he was born in a mental institution, and he sleeps only one hour a night...
I heard he once went public with his own buttocks and made $7 million.
Internals about 3:1 in favor of advancers. Let's see what happens at the 1030 reversal.
Sterling is the really odd one. When QE ends, who is going to buy the Gilts, the main buyer is the UK government, other buyers are only there because the government is there, so when they go, who will buy at these artificial prices. I think the Gilt market will back up pretty fast and sterling will get thumped and I mean thumped big time.
+1
Bob Doll from BlackRock was on CNBS earlier(about 7:30 central) talking down the dollar's performance through year-end. I thought it seemed like an obvious hatchet job to boost the market on a down day.
tyler, strong contribution by south park to really understanding the points contained herein.
Biggie Smalls put it best:
http://www.youtube.com/watch?v=6nzHIx4fVuE&feature=fvw
And... it's GONE!
I'm sorry, this line is for customers who have money with the bank only!
Desperate men do desperate things.
It's all muscle memory at this point. If I see a pop in the futures or the market, I immediately look for a bloody dollar. No surprises there.
At what point will Pavlov's dog not drool? We know that day will come. It's not a question of if but when.
"Pavlov's most important discovery came about not as a result of meticulous experiment but by accident. In 1924 there was a terrible flood in Leningrad. The waters had risen so fast that Pavlov's dogs, trapped in the laboratory, were in danger of drowning and were forced to swim around their cages, desperately holding their noses above the water. Luckily, a research assistant arrived just in time to free them.
Once the water had subsided and Pavlov's team got back to work, however, it became clear that something strange had happened: all the dogs' conditioned reflexes - salivating and so forth - had gone. For the dogs, the near-drowning experience had been so terrifying that their learnt behaviour had been erased. Pavlov's dogs had been brainwashed by their own fear."
Brainwash, Dominic Streatfield
Now THAT is an interesting piece of information I did not know.
Some research is in order. Bravo on bringing this to my attention. I just fired up amazon and ordered my copy.
http://www.amazon.com/Brainwash-Secret-History-Mind-Control/dp/031232572X/ref=sr_1_1?ie=UTF8&s=books&qid=1256146138&sr=8-1
Everything is going off of $ now. RUT up about 80% off March lows with no pullback greater than 6%. Banks aren't lending to anyone that I see and record compensation. 90% of the wealth is owned by 1%.
Nothing but a printing press behind it. Can stick a fork in it.
Everything is rocketing. I can't find anything but the dollar that is down! Oh wait, yen!
They are going to kill the recovery with higher prices for food & energy. All those people who are struggling with their mortgage prepare to default! All those people who just got modified, prepare to default again!
All those export companies, prepare to see your margins squeezed. All those buyers of US exports, prepare to delay your purchases as they will be cheaper tomorrow. As Dennis Gartman said, we have been waiting for 30 years to see the benefit of a lower currency on manufacturing!
Higher prices for all is Ben's wet dream. When you are paying $20 for a can of soda, Ben's job of promoting "price stability" will have been complete.
Not to worry, there is a correcting mechanism in all of this. The population will dissent well before $20 soda, so currency destruction will either be held in check at some point, or they'll go to far, and revolution will ensue.
Should be interesting either way. Most of the public will only notice when their cable bill hits $1,000/mth, and American Idol costs too much to view.
lol.
Perhaps they intend to go that far, and they've been preparing for it (i.e. nip any ensuing "revolution" in the bud) for a while now.
The Russell 2000 is up 83% in a straight line. It has no trailing p/e and is trading for more than 50X forward "phony baloney" "operating earnings" estimates. Yet it is up more than 1% today on no news. This will end badly, but it may not end until Dow 15,000. The longer it goes, the more bitter I get and the more damage is done to our nation's long term health.
and you would think with the negative ppi yesterday we will see a higher dollar. Unfotunatley for the bears,BB is still in command. But don't you all worry,there will be a trickle down effect from the market to us during the next century..............
Isn't it obvious that this is one of several chosen means of "recapitalizing" the banks?
Remind me who's a big short on Gold
Read on Bloomberg
Gold May Fall Victim to Investor Search for Yield: Chart of Day
By David Wilson
Oct. 21 (Bloomberg) -- Gold’s rally may not last much
longer because investors are turning to higher-yielding assets
instead, according to Jan Loeys, JPMorgan Chase & Co.’s global
head of market strategy.
“Price momentum in gold is strong, but we hate chasing a
rally that makes little sense to us,” Loeys and four colleagues
wrote in an Oct. 16 report.
The CHART OF THE DAY shows how the precious metal has
performed on the New York Mercantile Exchange’s Comex division
this year. The top panel illustrates gold’s advance to a record
$1,072 an ounce last week.
“The rally in gold does not sit well” because it won’t
receive any support from so-called asset reflation, or price
gains driven by the search for yield, the report said.
Investors have an incentive to look beyond gold and other
commodities because money-market rates are so low, Loeys wrote.
The rate on three-month Treasury bills dropped as low as 0.058
percent this month, according to data compiled by Bloomberg.
Bill rates appear in the chart’s bottom panel. Falling inflation rates in the U.S., Japan and Germany and
a banking-industry revival also weigh against gold, the JPMorgan
report said.
You can file that report right next to "IMF to sell 403.3 metric tons of gold".
Okay the USD is down 0.483 but gold has barely budged. And also, gold dips when equities do. We're supposed to believe this shit?
Yeah, I was wondering the same thing...see my comment above. The DXY-Gold "correlation" is utter bullshit, IMHO.
"Somebody" seems to sitting on Gold at $1060. It's funny how these bullion bank assholes like to draw a line in the sand and then defend it. We saw it at $950, then $1000. Both times the result was predictable. When will these morons learn?
see that sandwich at the end? yeah, it's a continuation pattern, one of the best. Bye Bye Bucky, Bubblenanke loves you
http://tinyurl.com/yf3apzg
Oh Dollar dear,
I greatly fear
Your kneecaps you have lost
DXY at 74.97
Today looks like a currency event preview. Everything rocketing up for a measly 39 increase in the DOW. Great job Ben.
I just lit a nice La Gloria Cubana with a worth less by the minute Benjamin.