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  • An update on Chuck...

    In This Issue..

    * An update on Chuck...
    * Greek crisis continues to weigh on the euro...
    * US data is mixed...
    * Rand sells off due to new market rules...

    Good day, I am going to start right out this morning with an update from Chuck Butler, as he got some pretty big news yesterday and wanted me to share the following with you.

    To my dear readers and friends...

    About the time you receive this Pfennig and read it, I will be heading to the hospital, to have my left eye removed. There's nothing they can do to save the vision any longer, and since it has cancer, and is causing me so much pain, this is the only option left. I could go into all the medical descriptions of what happened, but it doesn't matter any longer. All I ask is that you all say a quick prayer for me, and my surgeon.

    I believe I will bounce back from this quickly, and with new vigor, for I no longer will have the cancer pain in my eye. So... On this Fantastico Friday, let's get this done, and over with, and begin to live pain free! Onward and Upward!...
  • Misguided risk aversion...

    * Bad data pushes investors into US treasuries... * Barclay's says the euro will rally... * SNB surprises with a rate cut... * Iceland gets their bailout... ** Misguided risk aversion... Good day...The dollar rallied a bit yesterday on some very poor economic data which illustrated just how bad things are getting here in the US. As Chuck has repeatedly told everyone, in the current trade pattern the dollar rallies whenever we get negative data for the US economy. Investors get spooked by this negative data, and run scared into the 'safety' of US treasuries. Ty sent me a quote from respected newsletter owner/author Bill Bonner yesterday: "Misguided risk aversion, anyone? A few months ago, investors stretched for yields. Now, it's safety they reach for...and grab U.S. Treasury debt with both hands. Investors now seem to have an unqualified trust in the full faith and credit of the world's largest debtor. Yields on 91-day T-bills have fallen to 0.11% - scarcely a tenth of one percent!"...
  • SNB Cut Rates 100 BPS!

    * Trading Theme returns... * Automakers' bailout vote today... * Not using all your arrows... * Housing Starts go back to 1959! ** SNB Cut Rates 100 BPS! Good day... And a Tub Thumpin' Thursday to you! It's a short week for me, so this IS a Tub Thumpin' Thursday! I head to Florida tomorrow, and I'm ready! After last week, and the cold that's set in here, I'm ready! Too bad I'll be working about 1/2 the time! But, I'm not complainin'! OK... Whew! What an awful day yesterday for the currencies... In the morning, they ere in rally mode with the euro gaining ground to well within the 1.27 handle. But then the Trading Theme set in, and those gains were wiped out. The Trading Theme was set off by the awful Housing data, which reminded everyone of the deep, dark , dangerous days ahead... I bought some euros, and watched them rise, and went off to do something else... When I returned, they had fallen... UGH! The Japanese yen, however, rallied, as is the case with the Trading Theme... Risk trades get unwound, which benefits dollars, and yen. I've explained all this before, so I won't get into it again, but there's someone that has gone into the problems (credit markets and the Fed and Treasury's response to the crisis), and does a great job of telling it like it is... So, instead of hearing from me, ranting and cursing the "leaders" I'll let someone else explain it to you... This is a fellow named Ted Cook, that Ty Keough sent my way......
  • Who Owes Who?

    * Trading theme pushes yen higher... * Settlement day for Lehman CDO's... * Oil price fall hurts loonies... * Gold climbs back above $900... ** Who Owes Who? Good day... And a Happy Friday to one and all! It certainly doesn't look as though it will be a Fantastico Friday in stocks, as yesterday was a bloodletting, and overnight the Japanese stock market sold off 11%, and Europe is down about 9% at this point. UGH! This is getting quite ugly... But remember what I've been saying this week about the currency trading theme... When things look bleak, the dollar goes up... And when it looks as though all the stimulus might work, the dollar sells off... This has been quite evident in Japanese yen overnight, as stocks sold off 11%, the currency rallied to a 98 handle from 101 yesterday... And... Then in dollar trading, other than yen, the dollar is stronger this morning, pushing the euro back to the 1.35 handle. The high yielders, which enjoyed a day in the sun yesterday before U.S. stocks took a turn on the slippery slope, got whacked hard overnight! UGH!...
  • Retail Sales Disappoint...

    * Euro rally ends quickly... * Bernanke speaks... * Fighting inflation... * Problems in Iceland......
  • Signaling The All Clear Horn?

    * Some explanation, please! * Retail Sales drop in the Eurozone... * Another Iceland note... * Carry Trades live another day......
  • This Is Not A Trend Reversal!

    * German Retail Sales crumble...* UBS takes a big loss! * An Iceland note... * RBA leaves rates unchanged......
  • Let's Pick Up From Where We Left Off...

    * Consumer confidence falls... * Recession fears... * Norwegian krone leads the way... * Trichet speaks......
  • A Dollar Rout...

    * Euro hits 1.51! * Bernanke disses the economy... * Greenspan disses the dollar... * Charts say we're in recession......