Posted by: jhamon | July 27, 2009

MysteryHedgie: All Eyes on the Dollar

All eyes on the dollar, per my friend, MysteryHedgie:

The US$ (see attached chart of DXY) has been out of focus for much of the summer as the CTA’s get chopped in a sluggish sideways trade, surrendering some of  2008’s great performance.  The $ is now  at a critical level whereby both bulls and bears can state their case.  With correlations between assets near the  highs, the short covering in NDX having peaked last week and Biotech Obama-nomically overextended, the $ (where large short positions have been building steadily) is now the cyclical bull/secular bear battleground for stocks, commodities and bonds.  Until clarity develops, keep risk very tight and look  to options (where prices are the cheapest of 2009, by and large) as a leveraged low cost way of expressing views or defending territory and  respect the message of NDX weakness.            

All Eyes on the Dollar

All Eyes on the Dollar

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: