As mentioned yesterday, if gold and oil, especially gold, goes down then the market will follow. The market has been fueled by liquidity, which I don't think we have seen the end yet, but currently the market is assessing that possibility and DEFLATION.
Everyone has a favorite market to trade when fear abounds. I like the Yen and the Dollar.
The Yen because of the enormous carry trade against it. You can buy it through your broker as an ETF - FXY is the symbol. If there truly is a global sell off, this has the potential of staying strong. And owning dollars, because in deflationary times or the belief of one will cause the dollar to go up.
We see deflation in the products we buy as well as in the cost of labor, by the exporting of our industrial base.
The market told us that all is not well when the indexes were hitting all time highs but the brokerage firms stocks were remaining weak. And gold hasn't, nor oil, hit their all time highs. But they are close.
The market seems to want to go down today, but I can't hold any promises for 3 down days in row!!! And APPLE is reporting tonight.
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