Thanks for the great response. I don't follow curr...

2007-11-07T16:06:00.000-05:00

Thanks for the great response. I don't follow currency either but the japanese yen (carry trade) really correlates very well with the market direction and I think its a chicken-egg situation - what influences what is unknown.

As I write, finaly the 1490 Broke down! Tommrows Oct. sales and tonights CSCO report will set the direction tommmorow I guess. ASIA for sure will be bloody tonight.

:(.

Cheers..

Well first I am not a currency expert, but I belie...

2007-11-07T15:21:00.000-05:00

Well first I am not a currency expert, but I believe what Ben is doing to our dollar is a shame. I dont follow the yen much; Japan is an old slow economy - I am favoring commodity based economies such as FXC or FXA. Or even Swiss if you just want to bet on dollar weakness. My thoughts on dollar, gold, oil, silver is these are crowded trades - they have a long way to go, but they need some correction first.
I was looking at a silver stock I considered at 14, its not 17, SLW. DOH. Everyone is on this side of the trade and with so much liquidity floaing in the market who knows how long it continues. I am interested in these areas but I'd like to see a counter trend first. Oil to me is most vulnerable short term. I think probably $20 is just pure liquidity and Ben inflating, and those assets need to go somewhere. Oil probably belongs below $80. But with all these dollars it needs a home and petro is liquid. So until it breaks its hard to go against it. That said, I believe in all these long term - they just need breaks. 1490 has been amazing as support, this is the 5th time - each time it happens though I get more worried. Eventually it should break. Until then you play the odds, that it won't and keep trying to build gains because eventually the trade will go against you, and when 1490 breaks and they toss our Baidu, Google, Apple etc it will get ugly. But I am not in those areas - I am in fertilizer, infrastructure and others - not that they will not be hit, but they have more fundamentals behind them than say solar or things of that nature that speculators are running too. Chinese stocks have also stunk this week. SO speculators are being hurt there (which is good) I just feel retailers, and even financials are overdone - need some short term respite and then we can continue to see them move down.

Mark,Thanks for your commment. I am looking at FXY...

2007-11-07T15:01:00.000-05:00

Mark,

Thanks for your commment. I am looking at FXY and it shot up like crazy.. I loaded my boat today and keeping hopes that FXY drops tommorow and market bounces off of its support. If this support fails, we have some ways to go south before we even think of north. Comments on the correlation of FXY and the market direction?

Comments on Fund My Mutual Fund: Buying Into the Pain

Thanks for the great response. I don't follow curr...

Well first I am not a currency expert, but I belie...

Mark,Thanks for your commment. I am looking at FXY...