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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (71024)	5/30/2005 10:27:05 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

The dollar is breaking out. No idea what's going on (derivatives distort normal relationships a lot; now the value of a currency is determined by interest rates. Hmmm... ) Given past correlations, or, to be exact, dollar anticorrelation with the broader market, I would not be surprised if the stock rally came to a halt in June. The Fed is fighting, and will continue to fight deflationary forces with all their printing, so the outcome is not obvious. Again, DOW theory is on a SELL, both long term AND intermediate term. It will continue to be on a SELL until we make a new high. It now predicts a sharp sell - off. We have re-tested the broken up-trend late last week, which now should be resistance. Everything is extremely overbought. We'll see what happens, but I think odds now favor the bears for this coming week, and they could be back hungry.

To: William H Huebl who wrote (71024)	5/30/2005 11:59:24 PM
From: Skeet Shipman	Read Replies (1) \| Respond to of 94695

My candidate for quote of the decade - former Fed Head Paul Volcker: "I don't know of any country that has managed to consume and invest 6% more than it produces for long ... At some point, both central banks and private institutions will have had their fill of dollars. I don't know whether change will come with a bang or a whimper, whether sooner of later. But as things stand, it is more likely than not that it will be financial crises rather than policy foresight that will force the change."