Rumors
Issue: 11/07/07 Wednesday
What a great day. The market caught up with itself, as I predicted yesterday. The DOW went down 360 points.
More importantly, the dollar hit a very big new low against most currencies. It crashed all the way to 1.4731 against the Euro, but ended up at 1.4637. The Yen went down into the 112’s. Gold continued going straight up.
The reason for the big moves was a “RUMOR” that the Chinese were going to move some of their reserves from dollars into other currencies like Euros. No one can say whether of not this rumor is true.
The lesson for today is “A Rumor Can Move the Markets”.
So, where do you think the market will go tomorrow morning? I think it will start out down. If it continues down, we’ve got ourselves a REAL situation. However, if it turns and ends up, then we’re back into our normal market.
Here are Wednesday’s closing details:
DJ30 – 13,361 (Down 361 points)
10 year US Treasury Bond – 4.33% (Down 0.03%)
Euro 1.4637 – a new high
Gold closed at $834 per ounce. (Up $10) - a new recent high
Oil Closed at $96.37 (Down 0.33)
Gasoline is $2.44 no change
