Strong Dollar Policy

http://online.wsj.co...s_LEFTWhatsNews

Comments by Geithner indicate that the strong dollar policy is one in which the dollar doesn't go down too fast. New lows again this AM in the dollar index.

IT

IT, You are looking at the wrong chart (Dollar index). Dollar has bottomed. Euro, Pound, Yen etc have all topped and none of them have made any new recovery highs.

What exactly is the "policy?" Strength in numbers?

IT,

You are looking at the wrong chart (Dollar index).


Dollar has bottomed. Euro, Pound, Yen etc have all topped and none of them have made any new recovery highs.

I ve noticed also every statement made by IT is pointing to a bull run in equities.

IT,

You are looking at the wrong chart (Dollar index).


Dollar has bottomed. Euro, Pound, Yen etc have all topped and none of them have made any new recovery highs.

Looking at the wrong chart? I'm looking at the same chart that everyone who has called the bottom in the dollar for months as used. Dec. dollar futures.

Aussie dollar new highs today. Euro within 12 ticks of a new high...as I have posted before, I expect new highs in the euro, probably 1.52-1.54.

Either way, the gist of the article is that the "strong dollar policy" is one which the dollar goes down slowly.

IT

IT,

You are looking at the wrong chart (Dollar index).


Dollar has bottomed. Euro, Pound, Yen etc have all topped and none of them have made any new recovery highs.

I ve noticed also every statement made by IT is pointing to a bull run in equities.

I know it's heresy on this board. I'm not long (or short) equities. I'm simply watching as most of the board shorts all the way up. Right now I think gold, oil, and euros are better trades than equities.

By the way, I had an initial target of 1117 in gold futures posted here a a week or two ago. We hit it this morning. We'll see if that brings about some type of corrective action in gold.

IT

Edited by IndexTrader, 11 November 2009 - 09:06 AM.

IT,

You are looking at the wrong chart (Dollar index).


Dollar has bottomed. Euro, Pound, Yen etc have all topped and none of them have made any new recovery highs.

I ve noticed also every statement made by IT is pointing to a bull run in equities.

I know it's heresy on this board. I'm not long (or short) equities. I'm simply watching as most of the board shorts all the way up. Right now I think gold, oil, and euros are better trades than equities.

By the way, I had an initial target of 1117 in gold futures posted here a a week or two ago. We hit it this morning. We'll see if that brings about some type of corrective action in gold.

IT

But I am bullish on gold because demand for gold increase over time as many manufactured products have to use gold. I keep physical gold.

Shorts seems like a bunce of clowns operating.

Expecting top in market before end of feb. But it won't be because of dollar strenght. Thats conventional wisdumb. All paper money now declines against gold. A Pickup in speed of decline will be tipping point for stocks. The fed will soon find out much like the subprime mess, that the dollars decline cannot be contained. The old saying be careful of what you wish for comes to mind. Dollar will fall like stone. Long term the dow will go one to one with gold. It happened in the early 80's and 30's and they will meet again. Where and when nobody knows. Dow 2000 gold 2000. Dow 5000 gold 5000. Somwhere in there. Seems impossible, sounds crazy, but thats where were headed. Just my opinion. Contrary to popular belief we are far from bubble in gold. One day the dollar will go down and stocks will go down with it. That time is approaching. Call me a bug if it makes you happy. Do stock traders really believe that if dollar goes to 40 or 50 stocks go to 20,000 dow? Short term, 20% chance market tops in next week. 80% market runs up into year end.

Expecting top in market before end of feb. But it won't be because of dollar strenght. Thats conventional wisdumb. All paper money now declines against gold. A Pickup in speed of decline will be tipping point for stocks. The fed will soon find out much like the subprime mess, that the dollars decline cannot be contained. The old saying be careful of what you wish for comes to mind. Dollar will fall like stone. Long term the dow will go one to one with gold. It happened in the early 80's and 30's and they will meet again. Where and when nobody knows. Dow 2000 gold 2000. Dow 5000 gold 5000. Somwhere in there. Seems impossible, sounds crazy, but thats where were headed. Just my opinion. Contrary to popular belief we are far from bubble in gold. One day the dollar will go down and stocks will go down with it. That time is approaching. Call me a bug if it makes you happy. Do stock traders really believe that if dollar goes to 40 or 50 stocks go to 20,000 dow? Short term, 20% chance market tops in next week. 80% market runs up into year end.

I'm not seeing any reasons for your predictions. Always possible of course that you're right. But what I would urge you to do is to simply observe what the markets do, rather than to get it set in your mind what it must do. For instance, back in the Weimar Republic, stocks went through the roof as the government debased the currency. What the US is doing right now is debasing the currency. But there is no place to put your money that earns interest right now without taking on risk. Unless you expect the government to suddenly start working on containing the printing of money, taking on extraordingary debt, then you have to wonder what the effects of currency debasement will actually be. I've chosen to focus on gold first, and then euro and gold. I'll change when the markets change.

IT

Expecting top in market before end of feb. But it won't be because of dollar strenght. Thats conventional wisdumb. All paper money now declines against gold. A Pickup in speed of decline will be tipping point for stocks. The fed will soon find out much like the subprime mess, that the dollars decline cannot be contained. The old saying be careful of what you wish for comes to mind. Dollar will fall like stone. Long term the dow will go one to one with gold. It happened in the early 80's and 30's and they will meet again. Where and when nobody knows. Dow 2000 gold 2000. Dow 5000 gold 5000. Somwhere in there. Seems impossible, sounds crazy, but thats where were headed. Just my opinion. Contrary to popular belief we are far from bubble in gold. One day the dollar will go down and stocks will go down with it. That time is approaching. Call me a bug if it makes you happy. Do stock traders really believe that if dollar goes to 40 or 50 stocks go to 20,000 dow? Short term, 20% chance market tops in next week. 80% market runs up into year end.

I'm not seeing any reasons for your predictions. Always possible of course that you're right. But what I would urge you to do is to simply observe what the markets do, rather than to get it set in your mind what it must do. For instance, back in the Weimar Republic, stocks went through the roof as the government debased the currency. What the US is doing right now is debasing the currency. But there is no place to put your money that earns interest right now without taking on risk. Unless you expect the government to suddenly start working on containing the printing of money, taking on extraordingary debt, then you have to wonder what the effects of currency debasement will actually be. I've chosen to focus on gold first, and then euro and oil. I'll change when the markets change.

IT