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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (8926)	3/12/2008 9:46:24 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

"We gave the old dogs (banks) a few viagras so they could get busy (not fail). Now when that wears off, what do we give them next to fix their long term illness." Hmmm... I think a more proper analogy would be that the Fed is a defibrillator (and the other CB's were the adrenaline) that halted the current ventricular fibrillation that threatened to cause hypoxia in the financial markets: en.wikipedia.org The patient is certainly not out of the woods yet and a lot of healing needs to occur.. and if the disease progresses, it may require life-support (nationalization). But we've avoided flatlining, and the financial "Grim Reaper" (represented by the extreme short positions in the markets) is now hesitating.. But he'll find a few choice targets of opportunity and a few souls to collect before it all said and done. Anyway, enough of the medical/mythological metaphors.. ;0) fwiw..Oil didn't move lower, gold was flat..? That should tell you something.. Both should have shot up on the Fed news, if the perception exists that the Fed was inflating the money supply.. So.. we need to see movement in the USD. And today and tomorrow we're going to find out if that's going to occur. And this chart (it takes awhile to pull the Java chart up) seems to indicate a rally in the USD is at hand.. at least up to the upper level of the downward channel: fxstreet.com Again.. I believe that both the current Euro and Yen valuations are going to eventually force those CBs to take greater action to decrease the variance with the USD. Both of those economies were, and still are, export driven.. And now the US is becoming far more competitive in those export markets. And neither can be expected to become more consumer driven.. So something has to give on their side.. We need to keep in mind that this is a global problem, not just one that exists solely in the US. Hawk