Well… As you began to read today’s letter, you noticed the title, so there’s no reason to beat around the bush… Let’s just see what European Central Bank (ECB) President, Trichet, had to say that would deep-six the euro’s two-day rally… Come on, it won’t bite…
[Read more...]FOMC Puts $2 Trillion Floor On the Balance Sheet
August 11, 2010 By Leave a Comment
The dollar is flying high this morning, as the knee-jerk reaction to the FOMC announcement yesterday didn't last long. Let me explain… The FOMC statement was full of things that could be taken two different ways, but the first way it was taken was that the cartel would exit its reversal plans and implement a form of quantitative easing (QE)… I call it QE Light… Less filling…
[Read more...]Merkel Sends the Euro Lower
May 19, 2010 By Leave a Comment
The hits just keep coming for the euro (EUR)… As often as the Beatles put them out from 1963 to 1970, or Elton John put them out in the 70s…
Well… Its the same for the euro… Just when it looked as though the euro might survive a day without being taken to the woodshed… The Eurozone officials just couldnt stand the prosperity! (And I use that word loosely!) German Chancellor Angela Merkel made some proposals to gain control over destructive financial markets… Her first move was to place a ban on naked short-selling.
[Read more...]Spain Debt Downgrade: Is This the End of the Euro?
April 29, 2010 By Leave a Comment
No amount of soothing words from Germany was going to stop the tailspin of the euro (EUR) yesterday, after S&P downgraded Spains debt, now… Its a European debt pandemic according to the people selling the euro like funnel cakes at a State Fair.
[Read more...]Chinese Demand for US Debt: Knowing Who Butters Your Bread
March 16, 2010 By Leave a Comment
We had a pretty busy day in the currency markets yesterday, with the dollar rising sharply in the morning only to sell off again after lunch. The selling continued in Asian trading, and the dollar index is back down to levels it was at this time yesterday morning. These roller coaster rides will probably continue, as the markets just dont seem to know where to take the currencies. Short-term moves will continue to be exaggerated, but the long-term dollar continues to be in place.
[Read more...]Dollar Falters Overnight on Interest Rate Speculation
February 24, 2010 By Leave a Comment
It can be a struggle to find things to write about when the markets arent moving much. That has been the case with the currency markets over the past few days, as the dollar has been trading in a fairly tight range. It felt like the dollar had the possibility to break out of this range yesterday, as we got a couple of different reports that looked to push the dollar higher.
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Successful Investing Strategies in a Government-Centric Market
You’ve heard of “risk on”; you’ve heard of “risk off”… But have you heard of “everything off”?
That’s the trade that seems to be underway right now. Investors are dumping everything with a ticker symbol: US stocks, foreign stocks, government bonds, corporate bonds, precious metals, crude oil and almost every other commodity.
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