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goldminingXpert (29.57)

Dollar sets new 52-week High Tonight

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October 02, 2008 – Comments (2) | RELATED TICKERS: KOL , GLD , UNG

1.38 euros. We were up at 1.6 recently. The euro continues its long collapse back to parity. To all you commodity bulls who kept saying the bounce is manipulated, well, why isn't it ending yet? Normally a 52 week high is accepted as a valid sign of a trend change, yet everyone keeps hatin' on the dollar. Give it up guys, the bottom is in, and the DX is heading back over 80 with passion. If you insist on remaining long commodities, at least take a hedged position (say long Nat gas or coal and short gold). Gold is overvalued on financial armegeddon BS, while nat gas and coal appear to be cheap or at least not ridiculously overpriced. With an economic depression setting in and the dollar rising, you don't want to be anywhere near commodities (on the long side) without hedging.

DZZ is the CAPS play as you get a doubleshort, which means it goes up quickly as gold sinks. Plus the market is about to crash again, so the S&P will head down as DZZ ascends...

2 Comments – Post Your Own

#1) On October 02, 2008 at 4:37 AM, DemonDoug (77.77) wrote:

how can the bottom be in when the supply of dollars continues to rise in huge amounts without any real demand to back them up?  There is a lot of deleveraging from hedge fund redemptions and unwinding, and I'm betting the short term impact of the "no shorting" rule until 10/17 or whenever the bailout gets passed has been huge.

Once foreign governments stop buying dollars, and once hedge funds either go bk or stop having to sell equities to buy dollars, the dollar will be dropping precipitiously, mostly v. hard assets.  This is the disinflation before a huge reflation will occur (otherwise known as ka-poom theory, see: itulip.com).

I'm staying strong long minerals and hard assets producers and red thumb down on everything else.  Financial armageddon BS?  It is this armageddon that is being used to prop up the dollar with bailout crap anyway.  The people who predicted this crashing market are the same people who predicted the tech bubble and who are also strong long hard assets (schiff, shiller, rogers, hudson, janszen).

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#2) On October 02, 2008 at 9:17 AM, jesusfreakinco (28.98) wrote:

Demon - I appreciate and concur with your conviction, but it is hard to make sense of this market.  The USD rise just doesn't add up.  Frustrating...

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