Daily Archives: December 16, 2009

The One-Edged Sword

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Warning! Whine alert!

Looking at the action tonight, I must again ask: if the weak dollar was the reason equities exploded higher, how come a muscular dollar is doing jack squat for equity bears? WTF?

1216-eur
 

Above, the blue line is the EUR, and the black line is the /ES. If things were tracking normally, the /ES would be 100 points lower than it is now. Again: WTF?

It makes me think that when the EUR inevitably bounces, equities will roar higher. Grrrr……….

A Much Nicer Bull/Bear Spread (by Gary Tanashian)

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I am not sure what caused the anomaly that Biffermas noted earlier, but here is the chart updated as of yesterday at SentimenTrader.com.  It joins many other indicators pointing bearish to at least NOT BULLISH.  You should see the Investors Intelligence data at SentimenTrader.  It measures newsletter bullishness, and let me tell you folks, those trend followers are BULLISH to an extreme.

Rydexbb

Separately, have you seen the latest hero being trumpeted?  Here he is in full regalia, man of the year!

Tell me, just what was Time saying last year at this time?  What were the major media saying in March?  Patience my bearish friends.  Hope '09 may extend a bit into Full Hubris '10, but there is not much bullish going on from sentiment and risk/reward standpoints.  Nuh uh.  Oh, also check out the dollar.