World Currency Discussed

The USD fell, and a world currency was discussed, and the stock market went up. This is an important statement.

What a profitable day again yesterday! Traders took entry to our higher risk OEBKD call and locked in .80 profits, on same day trades, with minimal risk. We stop lossed our puts. The market is so irrational that we saw 9814 highs to 9561 lows in a single day, and came very close again to the market tops that stopped upside last time.

We hesitate, as always, as we see market tops. Note in our Dow projections that Roubini's concern on "too fast a run up", and Floyd's ongoing concern that consolidations do not last long enough to lock profits and keep a healthy market; we're now listing in our Dow projections market tops we might reach before the same free fall to 9376, or below.
Stocks and commodities rose yesterday, get this, as Australia raised interest rates. This is "evidence" to their economists that the recession is slowing, and recovery is beginning.

Just a few short years ago when Emperor Bush was commanding I remember arguments about "not having even entered a recession." To Floydian thinking, we've been through TWO recessions, the first around Bush, then streamlined to goosefat as the market moved up around Wall Street, only to come crashing down.

Bloomberg has sued the U.S to identify companies that received loans from the central bank, and by now you've all read the Gov't is accused of not telling us how bad it really was when the SECOND stimulus of 700+ billion came in the early Obama weeks. Please don't forget the 585 billion that Paulson, Cheney and boys rammed through Congress, "the end of the world" last Sept and October.

Obama is now struggling with an unemployment rate at 10%, and smart economists believe this unemployment rate will stay this high, through company leanings and less business, unless a THIRD stimulus (still called the "second" stimulus) is introduced to the American people within 6 months.

My favorite is the new bank game called “re-emic”, which stands for “reseecuritization of real estate mortgages conduits." Floyd Translation: The banks have taken more toxic assets they have in real estate and repackaged them to get a higher “security rating.” Sigh. Jim Rogers, famed trader, sees “inflation as already worse than the government is seeing it and hyperinflation occurring over the next few years."

We suggest market tops will lead to another potential overall 586 point overall drop to the market, before returning to upside. Yet again we believe consolidations too short, and upside quite euphoric.