Friday, October 1, 2010

The Dollar is Due for a Deadcat Bounce

Bernanke has declared all out war on the U.S. dollar.... things are so bad even as Europe's peripheral countries struggle with massive debt loads people are fleeing the green paper and running into euros.  Things are so bad, despite government intervention in the currency market for the first time in 6 years by Japan to strengthen the yen, people would rather "fight the Japanese Fed" (effectively) and buy yen.   It is pretty pathetic.

With that said, at some point the dollar has to perform a technical bounce from oversold conditions - it might last only 3-5 days but the rubber band is being pulled to a massive extreme.  I may soon "fight the Fed" on this one for a short duration trade as the oversold readings are reaching levels seen at other bounces...

No position but watching closely

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