Last year It was all about Crude Oil. Crude! Crude! Crude!
Everyone was an expert on the commodity. Everyday people were all hooked to the Nymex Website to find out where CL (CRUDE) was trading. Investors had CL at the top of their Index List. Anything and everything we were trading had to do with Crude. We were all trading crude and didn't even know it. Crude oil was the most influential asset class in the world. It was the biggest hedge trade in the world, as people were hedging sub prime with crude. The talk got so out of hand that it kinda peaked when crude hit 145. Ripe for a reversal.
Switch to today and its the Dollar that is talked about every single minute of the day. Dollar! Dollar! Dollar! Where is the US Dollar Index? Where is DX? How are Euro and Aussie doing? I am not going short as the dollar keeps going down and the dollar is sinking - I am buying.
Everyone including Matt Drudge is an international economist who knows everything about the Dollar. Kinda smells like oil. Which tells me the dollar is ripe for a 10% move up. We all know that the dollar is the funding currency for all of the speculative risk trading in the world. When the dollar rallies there is going to be a dislocation in risk asset markets around the globe. At the end of the day, its really pathetic that the Dow and SP needs a lower dollar everyday to get a bid. Truly mind boggling that currency destruction is the best news for buy side activity.
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