Wednesday, December 15, 2010

Swing Low for the Dollar?

The collapse of the long bond must have policy makers very concerned, with the banks not lending, and holding bonds to play the spread for income, marking capital losses on your bonds does not move you forward on your capital ratios.  Plus, with the 10 year backing up you can kiss the mortgage and real estate markets bye-bye, further pressuring the banks.

So what to do?  Well, nothing like a good scare in the equity markets by strengthening the dollar to take some of the pressure off.  Conjecture aside, I am safe in saying the dollar drives all, and the persistent strength is starting to take its toll.  Today it  (the dollar) hit a swing low, as I understand it, and I became even shorter in my portfolio.  Below are some landmarks for me.

I will post some trade ideas after I have a chance to reveiw my charts and filters.

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