Will Europe Collapse!!??

Will Europe Collapse?? I have turned my focus from the potential weak dollar to the ever weakening Euro. While our economy is not in great shape I am focusing on how much weaker the Euro Zone can get. I watch the Yen hammer the Euro last night and will be examining the impact that a much weaker Euro Zone will have on our economy and how I can make trades based on that theory. Natural gas firmed yesterday and I am hopeful that we will see some strength in commodities as I don't think we can see our averages move up until we see commodities show some signs of life. I think gold to $1000 is now a given and it could easily do it in the month of February. It is ever so strange to see the dollar strengthen and gold get stronger at the same time. If that is not a reason to be more cautious in this trading environment, you will perhaps never find a reason. I laughed my butt off last night as Larry Kudlow basically said we are in for a rally if the government won't mess it up. That is like giving a weather forecast that says clear to partly cloudy with a chance of rain. Covers most of the bases. Why would we rally here is what I have been asking myself. Other than a short covering rally, I don't see any positive news. When in America have traders been so dependent on news out of the government? I don't think we will see the dollar collapse anytime soon. That will have a good short term impact on inflation---but don't worry, I haven't changed my long term outlook that we are headed for much higher inflation. www.stockshotz.blogspot.com

I've been sitting here in Aachen, Germany this week. Everything looks weaker here than in the US. There is negative news about the economy on all the European alliances and talk about Iceland economy is dead. Scotland is in dire straights with rampant employment, and UK to follow suit as construction grinds to a halt even worse than what we have in the US. I can see why the dollar is stronger.... Barry

okay, skinny!

Edited by humble1, 30 January 2009 - 12:30 PM.

I wonder why SPX is not already at 700 or below with the results on GDP for 4th quarter just out. Except for IBM, AMZN & GOOG earnings are a disaster most other big outfits. This market should be collapsing big time. Why is it so stubborn?