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$/Euro at 4PM
A lot of currency positions were liquidated prior to the Holiday. More got shaken out with the Dubai story. So now it is 1:40.
If someone wants to re-establish a big position, this would be a nice time to do it. If the Euro makes a break for 1.51 in the next few hours we will be back to the races.
4:30 Nada. Zip. Gold went up a few bucks. Oil ended higher, stocks ended up. But no move in the $.
I smell a jump in Vol. I think there is a 3% move in the $ coming. There is a fair number who see that move higher. I think it is lower.
The $ had a very good reason to rally. The knee jerk move with Dubai was significant. But it did not last. We are not far from the lows set last Wednesday. What doesn't go up must come down?
I can't believe that this crazy year is going to end with a whimper.
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Well it looks like I was 12 hours early. Better early than late. Watch this again today. If we start slipping off the edge with the dollar it is going to get interesting.
bk
As long as Japan keeps shitting the bed there will be some sort of support for the dollar. Friday's 2.91% on the N225 was an anomaly for the past 2 weeks.
whatever enriches the scum at G(F)S and JPM the most is what will happen in this """"""market""""" that is pure farce
The Dubai debt ripples are only a few days old and yet the braindead are back to the dollar doomsday chat. Has last week not broadened your outlook to the fact that maybe the U.S. fiscal position may not be the first card to fall?
I take it you have your dough where your mouth is...you long US$...since when???
Cause so far being long US$ has not been a bed of roses or a rewarding patrioctic endeavour...so...pick your entry point freely, against any currency of your choice. We speak again in 2/3 months...
The best reason to believe that USD will not strengthen is because Bernanke doesn't want it to, and he has his finger on the button.
Kinda the key right there, no? Assume Chopper Ben is re-appointed (not a certainty, but go with it anyway). He has the very tool at his disposal to make hyperinflation a reality - and evidently nobody is going to stop him, or even slow him down.
So why should we expect anything but the logical end result of this policy? USD goes to 0.0+epsilon.
maybe the real reason is because folks on wallstreet plus day traders all believe he has the hand on the button; if Ben were so powerful, how come he didn't turn the economy around after the crisis? how come he didn't see the housing crash coming? investors, both bulls and bears are totally lost, wishing to be told what they wish to hear; when no one believes it anymore, the carry trade will unwind; that is why the squid is the greatest, they are doing god's work, and you better believe.
Ever wonder why this book was never made available in English? A best seller in China two years ago, but almost unknown in the West?
The Chinese know the game very well, and are encouraging their citizens to buy PM. They know what is coming.
http://en.wikipedia.org/wiki/Currency_Wars
They got another book that details the TRUE history of the US and Europe. It's known as a wild consipiracy theory here. ;)
Had a rich short position on US$, since April.Lightened up on the Dubai mess...basically was sort 142% my US assets, l am now short 121%....but that US$ rally seems at best very timid.
He has time to deploy...from now to Xmas...or is never. The carry traders will bury it and we can celebrate the US$ funeral.
The US$ debt crisis, of course, will make last year look like a joke.
They will NEVER pull liquidity out to avoid hyperinflation...they r still scared to death by deflation.
Hypeinflation is a sought after outcome for now...
Future cellmate Martin Armstrong sez:
Jan '10 DJIA > 10,800 = inflation is at ramming speed
pg. 12, http://www.martinarmstrong.org/files/Objective-vs-Subjective-Analysis-11...
Also:
And, official dollar devaluation by the end of the year! Oh, hmm.
Stop. You're scaring the kids.
There is always tomorrow. Thx Bruce.
The $ is rising in Brazil since GS said last week that BRL is overvalued. Bonds rose a bit today and we had a huge foreigner outflow during the closing bid in the stock exchange.
There will be a rally into the new year.
WTF Bruce.