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  • Stepping Up On The Soap Box...

    In This Issue..

    * Euro continues to get sold...
    * Freddie Mac needs $10 Billion more!
    * Auctioning another $80 Billion in Treasuries...
    * Norges Bank does the right thing!

    Good day... And a Tub Thumpin' Thursday to you! I don't really have a reason for it to a Tub Thumpin' Thursday, just thought it would be good to get going into the weekend early! I'm slowly getting back into the swing of things here. There's a parking issue that's got me so ticked off right now, but that's not what you came to read about, so... Let's get going!

    Well... The rout that was on with the euro continued for most of the morning yesterday, but then suddenly, it stopped, and we saw the currencies & Gold turn around... It was just like I had said the day before, that the euro would probably reach oversold levels, and we could see a mini-rally... And we did!...
  • Waiting On The Norges Bank...

    In This Issue..

    * Euro continues to get sold...
    * Will Norges bank get confused?
    * Thoughts on China...
    * Gold gets dragged down by euro...

    Good day... And a Wonderful Wednesday to you! It's getting quite ugly out there in the investing world. Yesterday I tried to draw a line of comparison from the near collapse of Bear Stearns to the problems of the Eurozone... That line became quite a bit more clear yesterday and in the overnight markets... Let's go to the tape!

    Well... It was another day of selling the euro and dragging other currencies along for the ride... This time, Gold and Brazilian real could no longer resist the pull / drag of the euro selling... It has actually become a rout on the single unit, as now, we're not only dealing with the sovereign debt risk of Greece (which I still contend is not that big in the whole scheme of the Eurozone) but now, the euro is sailing into technical trading rough waters......
  • A Sustainable Economic Recovery?

    In This Issue..

    * More range trading...
    * Eurozone doesn't need more stimulus...
    * A$'s outperform on rate outlook...
    * A double whammy for the dollar...

    Good day... And a Happy Friday to one and all! The end of another week... I was out on Monday, and it still seems to have been another long week! UGH! Oh well... It's Friday, and this weekend is Father's Day... So, we've got that going for us, eh?

    More range trading in the currencies yesterday, with the euro leading the currencies higher for most of the day, only to see their gains slip, sliding away by the late afternoon. In the overnight markets, the currencies, once again, have moved higher, but nothing to get all lathered up about......
  • Santa rally continues...

    * Santa rally continues... * Norway cuts 175 basis points... * Japanese intervention possible... * Indian rupee moves up... ** Santa rally continues... Good day... The dollar is falling much faster than it rose, the euro surged over 6 cents vs. US$ since yesterday at this time. The 5 day return chart for the major currencies vs. the US$ is pretty impressive: Swiss Franc +12.55%, Euro +9.5%, Danish Krone +9.44%, New Zealand $ +8.41%, Australian $ +5.08%, Swedish Krona +4.85%. And it continues. The past two weeks have been the most dramatic move by the dollar that I can remember. The dollar index, which tracks the US$ vs a group of major currencies is back trading right where it was at this time last year. I pulled a chart of year to date currency returns vs. the US$, and there are now 5 major currencies which have appreciated vs. the greenback: Yen +26.44%, Swiss + 8.07%, and Singapore, Danish Krone, & Euro + 1%. And with the recent big moves, our phones have been lighting up with investors moving back into currencies. I love the fact that all of these investors are diversifying, but the speed of this recent move demonstrates why we suggest keeping your investments spread across all asset classes. Trying to time into or out of a market can be frustrating, while keeping consistent asset allocations is the key....
  • A Currency Bounce...

    * U.S. stocks soar! * Currencies rally! * Consumer Confidence at an all-time low! * Getting off the bench! ** A Currency Bounce... Good day... And a Wonderful Wednesday to you! The fall chill has really set in here as witnessed by my need to throw on a jacket and my Missouri Tigers baseball cap each morning! When you are basically bald like me, the cold air is not a friend to you, thus the need for a baseball cap from now until late spring! Well... The trading theme remained in place yesterday, but this time it was reversed. For those of you new to class, or any of you who have been playing horse hooky, the trading theme that has gripped the markets since August is: The deeper, darker, and more dangerous the U.S. economy and financial meltdown, including the credit market's locked status, the dollar gets bought... If there is any sign of light to all this mess, the dollar gets sold, for whenever the markets get their minds off the mess, they are reminded of awful fundamentals for the dollar....
  • More Hawkish ECB Talk!

    * Euro pushes the 1.60 envelope... * Bank of Canada to cut rates today... * Norges Bank to hike rates tomorrow? * Asians get the inflation memo!...