Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Tuesday, October 9, 2007

Questions......

I'm interested in the move the dollar made last tuesday.

that move had to be a preemtive move before the jobs numbers.

Say there is a Carry trade.

The weakening dollar from people simply selling dollars...

So, the dollar selling stopped when the market hit a new high on the dow.

Looking at the chart on Friday before the Jobs number, the dollar hit a low.

Which is a 3-4% change since the downturn. and has given up half it's gain since the fed cut.

of 2 theories:

  1. the Dollar reflects the money supply
  2. The Dollar reflects the international relative strength of the economy.

Does this reflect the duality in our markets, the weakness of the economy and the strength of the Stock Market.

What about a dollar Dow spread on it.....

Fairly bullish for stocks is that the dollar is outpacing the weakness of the dollar.

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