20 December 2008

US Dollar Daily Chart

The commitments of traders has not turned negative on the Dollar for the funds, but has decreased sufficiently to indicate the Eurodollar short squeeze has been relieved, at least for now. The TED Spread will indicate any reversal.

We will have to see how this plays out, but we are now bearish on the dollar again for at least the short term, and remain bearish in the long term still despite the strong counter trend rally. Our intermediate term objective of 66 remains unfilled.

While the Obama Administration cannot take a 'weak dollar' policy it is the only practical way to correct the imbalances brought about by the last 20 years of systemic manipulation. It is either that, or the selective default on sovereign debt, most likely through conflict, a hot or cold war.

Ironically enough, we think all of this is unnecessary and without good purpose, excepting the pathological greed for power of the elite in all the nations involved.

Just as a reminder of where it stands...