Ride the Dead Dollar to Prosperity

Before I go into a long-winded rant about how great a “dead dollar” is for stocks and the economy, I would like to acknowledge today’s “fuck you, you’re dead” reversal. There is no way to spin it but badly. Following this mornings spike, the sellers have been out in force, crucifying the long only crowd to their dogma. My guess, the market corrects further tomorrow, producing a mini-panic amongst the true non-believers.

Anyway, if you look at the chart above, you will see your dollars at work. In short, a weak dollar enables U.S. companies to crush their foreign counterparts and enjoy big dicked profits overseas, particularly those companies with big overseas business, like KO and MCD.

In my opinion, as long as the dollar is weak, commodity stocks must be bought, especially on dips. And, if you are a believer in mustard seeds, well then, get long the big multi-nationals, for they will profit most from this situation.

During today’s trade, I took profits on a number of small-crappers. At the present, my cash position is north of 30% and my gains are well above 45%, year to date.

The only small cap stocks worth my long term interest are FTK, ENTR and RFMD. All the other names are simply river boats gambles.