The dollar has dropped to a 3 month low against the yen. I believe that many traders that were short the yen are being forced to cover their positions. The yen was up big today, 246 points through critical resistance. The dollar is still the place to be as this is a corrective move in the dollar which should be pressured over the next few days.
If the yen reaches 125 before 150, I shall send you some goodies from Yummies.
Rallies in the stock market are selling opportunities. The lows are lower, the highs are lower. We may rally through Friday at the latest, but that's it. We will eventually test and break Monday's low and things will really get ugly. Check out the new highs and lows in NYSE and NASDAQ today.
Latin America still has 500 billion in debt courtesy of the USA banks with the guarantee of the IMF. The IMF is broke and will have to come to congress for more money, which they won't get. The Republican nincompoops and Democrat morons are finally asking questions. The IMF, the banker of last resort, has failed and will have implications that we are not yet aware of. We may soon be looking at global recession, which is a precursor to depression.
Dec. gold up $3.30 to $282.20. Strong resistance starting at $286, that is the first level that we must reach before saying if we are in the process of bottoming out. Silver bounced up nicely today, but still has many gaps to be filled.
NAPM report this morning at 49.40, bullish for bonds, indicating that the economy is contracting rather than growing. A reading over 50 shows that the economy is growing. Pullbacks in bonds are buying opportunities. |
