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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Chip McVickar who wrote (1526)5/9/2000 1:33:00 PM
From: John Pitera  Read Replies (2) of 33421
 
Wonder what fundamentals would support the view of a top in the bonds and the dollar...?

the fundamentals that would support a top in the dollar
would have to include the record and Ever Expanding US
Trade Deficit. Every month we unload the goodies off the
boats and Pay for them with electronic entries in a
computer system.... I know, nice work if you can get it -g-

To Offset this, there is not really another compelling place
for assets to flee to.

The Nikkei is back below it's 200 dma, we see what happened
to the nascent AUD rally.

I saw a technician yesterday commenting that this steep fall
in the AUD the past few months is portending a deflationary
move coming in the CRB.

Clearly the Market Capitalization that is evanescing off to
Money Heaven can be construed as a Deflationary
event. Markets fundamentally work on a Confidence in the
System
which from time to time gets challenged.

John
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