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Strategies & Market Trends : 50% Gains Investing

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To: Sober who wrote (79793)7/6/2009 11:44:23 AM
From: Keith FeralRead Replies (2) of 118717
 
I can't figure out the relevance of the US dollar to being short equities. The inability of the dollar to hold it's own the past couple months has been a negative as much of a positive. It's tough for foreign money to flow into US equities. The market can't really stage a cyclical recovery without some kind of stabilization or rally in the dollar. The UUP has tended to bottom with the market at most of the major market declines since the beginning of the year.

I do think the weakness in the dollar enabled crude prices to get ahead of itself above $70 the past couple of weeks. I think the short term recovery trade is ending as the long term recovery trade is coming into focus. The inventory issues for nat gas is actually improving, and oil prices are back to sufficient levels.
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