falling_dollar

The dollar sold off today pretty nicely, but the market didn’t rally by the same proportion.  Does this mean that the dollar and the market are finally starting to disconnect?  I not going to say that, but it does tell me that the selling of the dollar isn’t causing the market to rally as much as it used too.

That’s a clear indication that the market is exhausted, and ready to roll over.  Look at the selling in the afternoon when the dollar was still flat (after selling off in hard in the first hour of the day), and look at the market. You will notice that the dollar never really moved much the rest of the day, but the market sold off.

Even with the light volume that the market has had recently, it is barely able to stay positive today.  Meanwhile, the Nasdaq and the Dow actually closed lower.  However, I do believe it will go up to that 1127 level first, before any selling is going to happen.  That gap needs closed, and who knows if the market will ever get back this close to it or not?

Of course after a 10-20%, we could rally back up in the summer and make new highs… as anything is possible when you can print all the money you want, and fudge any economic reports.  But, that might not happen, as this market could continue down for the next few years.

Or, they really can stop “the great depression two” from happening… and I think I saw a pig fly by my window!  Never mind, that was just a dream… just like the government’s plan to save the economy.  The only thing I see them saving is their retirement accounts, as they are making sure those get inflated by lobbyist donations before they leave office to go to work for Goldman Sachs.

Anyway, I’m drifting off subject, as I don’t know what to tell you about tomorrow?  Probably another choppy day ending flat to down, while we wait for Friday’s job’s data.  That should produce a sell off if they are really bad.  Of course you can’t really expect the government to release bad numbers, as they are quite easy to fudge (aka… Lie!).  On the other hand… what if they want the market to sell off, as they are already positioned short.  Just food for thought.

Red