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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (24196)	1/7/2005 9:23:58 PM
From: russwinter	Read Replies (3) \| Respond to of 110194

Fuel for USD rally, the displacement and liquidation of speculator/hedge fund Fx long positions, refer to chart, jessel.100megsfree3.com Note: First USD bottom around 12-7, specs were long 345,059 Fx futures with options, and were long 213,329 gold. On Dec. 8th money printing orgy comes to end, as Fed finally starts to mount a USD defense by ending excess liquidity creation of October-November, and first week of Dec.. Simple premise here, printing USD makes foreign central bank intervention nearly impossible. This is a quid pro quo coordinated action, brought on by immense pressure and even threats world wide. The big hedge fund raid and now their duck and cover against the USD is the lighter fuel to burn what I believe is wet charcoal, without significant rate increases, and shutting down the printing presses (and for longer than a few weeks). USD mounts a feeble rally that ends about Dec. 14th, and tests a double bottom on Dec. 22-23 (se chart above). Spec long position reduced to 255,932 in FX, and 172,047. Fed now forced to keep eye on the ball, as they keep the heroin to a slow drip. Message 20923392 Finally USD mounts more impressive rally, as cannon fodder specs run for cover, reducing FX longs to 218,610 on Tues. Jan 4th (latest available data), and 145,892 in gold. 64.82.65.31 No doubt this fund liquidation continues as USD rallies three more days into weekend, as Fed withholds more heroin from patient: virtually no securities bought outright (a mere $77 million a week over last three weeks versus $1.776 billion/week during the nine week money printing orgy), no coupon passes since 12/8, contraction in both temps bullandbearwise.com and securities lending, bullandbearwise.com combined with Tuesday FOMC minutes MoP bluster statement. All remaining heroin injections for this manipulative squeeze operation being administered by foreign CBs, who purchased $18,121 billion in bond and agencies over three weeks. This is a game of chicken to play with a heroin addict, leaving the stock market shaky going into next week, all to effect a USD "rally" from 80.75 to about 83.50. Do they dare blink? Meanwhile investors show confidence in the USD by using the dip in gold to purchase 31.37 tonnes of physical gold in the GLD ETF between 12-29 to 1-7. streettracksgoldshares.com