Whoa Daddy!

And if yesterday was fun, what was today?  An absolute joy if you were long equities, metals, financials, etc.  Surely there were some celebrating and some puking in the hallways today.  Of course it is difficult every day, but so far following the dollar and the catalysts behind the moves in the dollar have treated us well.

In a simple world, this makes sense – print shitloads of money (supply) and drive assets higher (demand).  Does anyone think this is good in the long run?  No, except for Helicopter Ben.

There will come a day when we pay for these infusions of cash, but it seems it won’t be now.  The opposite of a declining dollar is rising gold and silver.  Protection.  Funny thing is that a 1% drop in the dollar and a 1% pop in equities leaves us pretty much even at the end of the day, week, month or year.  Not sure if Bennie gets that.

I am looking for the Dollar to now test ’09 lows of 74, and ultimately 71 before year’s end.  We’ll then see a re-trace upwards for a while, then rock it into the spring to the downside.  Coincidence that QE2 is scheduled to end in June?  I think not.

Staying with gold, miners and silver for a while.  Trade ’em well and trade those extremes!

If this keeps up, I’m gonna treat the family to Ribs and Whiskey…..


About thefront9

Independent trader with a flexible approach to the markets. Position trading, swing trading and day trading using Futures, Equities and Options. This site is intended to help others (and myself) see what I see and to stay true to the discipline of making trades at the extremes. Contrarian and TastyTrade addict! Living in Texas with my family, helping others and maybe playing some golf from time to time makes life busy and great. Add a little music and humor and that just about sums it up. Trade the extremes and manage risk.....always!
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