Mystery Dollar
I must apologize for the interruption to economyguy, but I’m hoping to have this sorted out on this ship. I had the architect of the ship’s IT System working on it, so it should be much better now.
Friday was sort of historic in the markets today. The stocks went wild as oil dropped to technically significant lows, and the Dollar strengthened like it hasn’t in years. Gold was down and is approaching a big purchase point.
In the news today….
The big news was oil. It has broken through a technical price where the last high will not be repeated in this pattern. What that means is that, from a probabilistic viewpoint, when the price of oil (or anything in reality) falls a given percentage from its recent high, it won’t be going back to test that high in the near future.
You should be able to enjoy lower gasoline for awhile longer. Thanks goodness.
The Dollar, on the other hand, gained about 4 cents against the Euro, and this sudden jump MUST be retraced if it is to be held for a longer time. You just don’t see these types of massive moves without a testing of the gap. This is something for you to watch out for.
What does this mean to you???
The stock market is still a BEAR. That hasn’t changed.
Inflation is with us, and will be part of our future – get used to it.
Oil and gasoline will be cheaper for awhile – maybe through the end of the year.
Gold will probably become a “buy” in the near future – wait for it.
The Dollar is a mystery. Lots of people want the Dollar to strengthen to make the rest of the world’s problem go away, but I personally don’t see that happening in the LONG TERM. The fundamentals of the US Government printing money hasn’t changed. Inflation is relative to other nations, but the US seems to be in the lead.
Here are today’s numbers:
Dow Jones 30 Industrial – 11,734 (up 303 points)
10 Year Treasury Bond – 3.95% (up 0.02%)
Euro – $1.5006 – a massive jump in the Dollar!!!!!!!!!
Gold – $865 (down $13)
Oil – $115.20 (down $4.82)
Gasoline – $2.89 (down $0.12)
