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$US Dollar Dominates
Posted on 09/25/2006 16:38:42 | Link | Post Comment
Yesterday the action was relatively subdued across most markets, while United Airlines stood out soaring an additional 22.12% on the day over and above Friday's 13% gain. It's really amazing how this issue has been ignored for weeks trading in a very tight range, while energy prices were continuing lower almost daily with little positive impact on the bankrupt airline issues, while leading airlines issues soared. It kind of illustrates just how much trouble these airlines are really in, with Delta Air DALRQ and Northwest NWACQ under additional pressure over the last few days trading mostly at new lows, while United finally got going and surged higher in a compensatory catchup mode, based on recent more positive developments and then surprises by how much it actually moves up: 40% in just 2 days! We did alert readers to be ready to buy into these issues as fundamentals improve. We also cautioned as to the difficulties and dangers of trading in bankrupt issues as evidenced by action in Delta and Northwest.
As we mentioned yesterday, the US Dollar appeared poised to continued its advance that is now happening quite dramatically having surpassed the critical level we suggested would likely determine whether it can advance significantly higher especially in light of a particularly weak Japanese Yen that is now in somewhat of a freefall and with the uncertainties that are currently emanating from the European Community, there has been little support for the Euro, so the Dollar is now surging to new multi-year highs. This is likely to impact stocks some this week. While stocks and the Dollar have been rising together, there could be a divergence for a week or two, in light of the exceedingly strong Dollar, until some kind of consolidation or pullback occurs. Whatever the naysayers may be promulgating, the current economic policies appear to be favorable for the US Currency, despite deficit warnings by the Fed.
The Grain markets are beginning to stir from a multi-month decline and one more nudge to the upside could set them up for a serious rally into years end at least. Sugar is on the cusp of breaking out to new multi-year highs and Silver remains reasonably firm, all in the face of a super-strong US Dollar. The Energy markets could find a bottom sometime today and turn higher into Wednesday.
Trade Well,
From the Desk of Savant
As we mentioned yesterday, the US Dollar appeared poised to continued its advance that is now happening quite dramatically having surpassed the critical level we suggested would likely determine whether it can advance significantly higher especially in light of a particularly weak Japanese Yen that is now in somewhat of a freefall and with the uncertainties that are currently emanating from the European Community, there has been little support for the Euro, so the Dollar is now surging to new multi-year highs. This is likely to impact stocks some this week. While stocks and the Dollar have been rising together, there could be a divergence for a week or two, in light of the exceedingly strong Dollar, until some kind of consolidation or pullback occurs. Whatever the naysayers may be promulgating, the current economic policies appear to be favorable for the US Currency, despite deficit warnings by the Fed.
The Grain markets are beginning to stir from a multi-month decline and one more nudge to the upside could set them up for a serious rally into years end at least. Sugar is on the cusp of breaking out to new multi-year highs and Silver remains reasonably firm, all in the face of a super-strong US Dollar. The Energy markets could find a bottom sometime today and turn higher into Wednesday.
Trade Well,
From the Desk of Savant
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Examples
Morpheus Trading - Mon Jul 21, 2008 08:33AM
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
Morpheus Trading - Mon Jul 21, 2008 08:31AM
NOTE: Please click on the charts below to enlarge them i [read more]
NOTE: Please click on the charts below to enlarge them i [read more]
Millionaire Now! by Larry Nusbaum - Tue Jul 22, 2008 09:23AM
Hedge funds have made billions this year shorting the banks, [read more]
Hedge funds have made billions this year shorting the banks, [read more]
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