One word of caution for bulls. ISE equity closed at 190, which is very optimistic.
More on the dollar:
"In all the years I've been trading I've never seen such a one-sided position against the dollar," said Dennis Gartman, publisher of the Gartman letter, speaking at a Euromoney foreign exchange conference in New York on Thursday.
"It is absolutely shocking how overtly bearish the world is."
He also reports that classic sign of a market mania, a variation of the shoeshine boy giving stock tips, saying that a doctor had told him on the golf course that he'd opened an account in order to short the dollar.
...And even though he thinks the medium term direction of the dollar will be down, he thinks the sheer weight of people all betting the same way opens up the possibility of a vicious short covering rally, as the herd all get caught trying to get out of positions at the same time if sentiment against the dollar changes, even slightly.
"The public is always taken out behind the shed and given a good solid thumping."
My feelings, exactly. This trade (short Euro/long dollar) could be upon us sooner than people think.
More on the dollar:
"In all the years I've been trading I've never seen such a one-sided position against the dollar," said Dennis Gartman, publisher of the Gartman letter, speaking at a Euromoney foreign exchange conference in New York on Thursday.
"It is absolutely shocking how overtly bearish the world is."
He also reports that classic sign of a market mania, a variation of the shoeshine boy giving stock tips, saying that a doctor had told him on the golf course that he'd opened an account in order to short the dollar.
...And even though he thinks the medium term direction of the dollar will be down, he thinks the sheer weight of people all betting the same way opens up the possibility of a vicious short covering rally, as the herd all get caught trying to get out of positions at the same time if sentiment against the dollar changes, even slightly.
"The public is always taken out behind the shed and given a good solid thumping."
My feelings, exactly. This trade (short Euro/long dollar) could be upon us sooner than people think.
This entry was posted
on Sunday, November 04, 2007 at 11/04/2007 02:50:00 PM.
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