Thursday, September 30, 2010

Momentum Market

Not that common to see such a big jump off a slightly better than expected jobless claims number and third revision of GDP.  No one usually cares about the 3rd revision. Dollar is weaker again, almost a daily phenomena.  Anectodotally, there are still dollar bulls who want to try to catch a bounce and are looking for a dollar bottom.  That's bad news for the contrarians looking to short the euro now. 

A tangent of that weak dollar trade is the strength in commodities, which the hedge funds are piling into at the moment.  Gold at $1316, it goes up slowly and steadily.  I would not short that monster yet. 

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