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[TTHQ Staff]

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Dallas, TX January 20, 2010, 08:00 EST

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[img]http://www.joe-duarte.com/images/000.gif[/img] [img]http://www.joe-duarte.com/images/000.gif[/img] Brown Wins But Nothing IsCertain [img]http://www.joe-duarte.com/images/000.gif[/img]

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[img]http://www.joe-duarte.com/images/000.gif[/img] [img]http://www.joe-duarte.com/images/blok_rub_top.gif[/img] Betting On Gridlock Is AsUncertain As It Is Attractive [img]http://www.joe-duarte.com/images/uup.png[/img] Chart Courtesy of StockCharts.com A move above 23 in this ETF would suggest that the trend for the U.S.dollar may be starting to turn up. Conclusion Wall Street sees gridlock as a good thing. And they have a point, giventhe factthat divided government usually leads to only the passage of laws thatdeal withthings that are absolutely necessary. As with the past twopresidencies, it'sclear that when Congress and the President are from the same party,things getdone, and lots of people don't seem to like the things that get done,or nearlydone. And some in the market are betting that this will be a similarsituation to 1994,where president Clinton moved well to the center and avoided acatastrophic turnof events for the U.S. government, while ushering another five years ofsignificantstock market gains. The problem is that this isn't 1994. Barack Obama isn't Bill Clinton.Nancy Pelosiand Harry Reid are unpredictable, and are really p.o'd about lastnight. Furthermore,this crop of Republicans likes to spend as much as the Democrats. Still, there's going to be a whole lot of fighting going on in the nextfew weeks,so maybe that's the key. If they're all fighting amongst themselves andwitheach other, those of us who actually work for a living may get a break.Evenif it's just for a few months, it may be worthwhile. No matter what, though, this is not a victory for those who wantsmaller moreresponsible and frugal government. It's a start down that road. Buteven as astart, it's not much of one, given that in 1994, the Republicans hadthe Contractwith America. This time around, they have nothing besides their generaloppositionto anything that has to do with Obama. That can only carry you so far. For investors, it means that the stockmarketis still a risky place and that the dollar is becoming more attractive. Prepare for an uncertain future. Get a detailedtrading plan in your pocket.Read Dr. Duarte's All NEW Books "Market Timing For Dummies." and "Trading Futures For Dummies." The TradingManuals forAll Seasons. Also Available As Kindle Books.

[img]http://www.joe-duarte.com/images/fxp.png[/img] Chart Courtesy of StockCharts.com It's hard to pen a column based on a security that will trade an hourafter we go to press. But since the Asian markets dove overnight, thisone might be worth looking at. Over the last few days, the Chinese stock market, along with otherAsian bourses,has been struggling. Tighter monetary policy in China is one reason.The U.S.dollar is also starting to show some strength. But mostly, there's a feeling in the air that China is the next bubbleto pop.Lots of commentary has been produced on that topic lately. And why not?China'scentrally planned economy has been a set up to crash for a long time,but hasn't.That's because the government is clever and has deep pockets. Yet, there is this thing going on with Google now, which isinteresting, as itmay affect the fate of those companies in China that do real businesswith therest of the world. There's clearly something in the air in Beijing, and on the Shanghaimarket.Watch FXP carefully.