The past two days we have see a double test on the 1100 resistance level.
Is this the fail today? Is this the top? Is this a temp reversal just as we saw back in July? Whats the catalyst for financial Armageddon? Commercial Real Estate (CRE), the financials??
Well, the interesting thing is that fundamentally everything is in place for a continued weak dollar. As long as sentiment (ie: the people still believe in the fed) remains we can see higher equity levels via an artificial weak dollar (Fed Policy). Though it seems that the monkeys on capital hill are trying to take away the Fed's street cred "Dodd's Financial reform" <-- click here
How long before this sentiment will disseminate into the populous? Or will some other big wig on capital hill actually back Bernake?
Lots of upside and downside risks...
So what are my thoughts? I'm going to be conservative and err on the side of caution until better trend formations/indicators form.
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Alexander Lê
Analyze Capital LLC
le.anlzgroup@gmail.com
I like your logistics...Conservative trading is key at the moment. Also, The USD index (EOD) is definitely oversold. So I agree with a week dollar. My focus though is how commodities will react. We are seeing sharp sell offs in energy with continued strength in Gold. What are the upside/downside risks here?
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