Friday, December 04, 2009

Time to Switch Gears?

Is the dollar finally going to get the short squeeze a lot of us have been anticipating? It's difficult to guess, but I thought it might be time to review how we can best exploit that trade if this starts to work. The game has basically changed as far as who's leading and lagging today and this is obviously all dollar related. The Dow started lagging early into the tape. These are the stocks that have been relying on the sinking dollar and exports and they seem to be taking quite a lovely hit so far. I apologize for no trend lines on my charts, but my software decided to laugh at me today, but you'll get the gist by just looking at the candles. Anyway... my theory was the RUT would take the biggest hit off of a lower dollar and higher oil, and that trade has worked very well, but again.. it might be time to consider the large caps with international exposure now if the dollar starts a move up. So a few examples in the charts.

I'd also like to say: it was one tough cookie to wake up to these ridiculous UE numbers today, we've been slapped silly for so long it's difficult to stay focused and positive. But dig deeper folks, we've made it this far and they haven't defeated any of us, nor will they. Sometimes we just have to be firewalkers- mind over matter, nothing more. So hang in there, we have an excellent support system here. P.S. as I'm finishing this these charts look even worse. :-D



blog comments OCCASIONALLY powered by Disqus