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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (75662)	6/27/2011 2:16:03 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 219809

(We must all learn to be forex traders, pips n piigs!) Yep.. and when the IEA decides to dump 60 million barrels of oil into an already glutted oil market, we need to become commodity traders as well. Since oil (and gold) act as an inverse to the USD, it would strike me that the Treasury and Fed is now shifting to popping the commodity bubble that is hindering economic recovery (since high energy prices act as a tax on economic activity). Pumping money into a financial system that remains in a deleveraging mode isn't working. But targeting excess speculation and manipulation in the energy markets that are keeping oil prices higher than current global demand justifies is an interesting, although risky, maneuver. Having the USD increase in value is not good for the Dow or S&P as it requires those markets to be revalued in now appreciating dollars. Thus, it's likely an appreciating dollar will keep the equity markets in the US in a corrective state. But I'm fine with that if it means the cost of actual economic activity is reduced via lower oil and commodity prices. Hawk