Indeuuuuuuuuud, laddie!
__________________________
Well, Ole Glory Glory Ben’ll Doo Ya told you what he was going to do today, so the question you have to ask yourself now is : What ahh YOU gonna do aboud it ? (sic)

Don’t be surprised if all kinds of basket-woven skull monkeying comes out of this latest Fed announcement revealing that — sooprise, sooprise! — the wall eyed pirates are not going to shrink their balance sheet back down after all, and they will continue to launder the soiled curtains of debt they’ve been accumulating with the refreshing detergent of icey-Wintergreen mint T-bills.

In other words, have another round of champagne punch, my not so sober friend!

With the dollar as oversold as it still is, I wouldn’t be surprised to see some “re-invigouration” (sic) in our sickly green currency given the “all safe” pronouncement we just got from Ben regarding continuing Fed bond buying (doesn’t this just seem so very wrong to you??).   

 In fact, the daily dollar chart is already showing some signs of  coming off the oversold condition:

This brief respite aside, I don’t see the relief rally lasting very long.  One reason is the terrible technical damage we’ve seen in less then two full months.   The 20-day EMA has just today dropped below the 200-day moving average, and one cannot discount the steepness of this recent decline.   The smart money is getting out of the dollar for more dearer territories (you can probably name a few now, no?).

You can see the progression of the dollar decline more clearly on the weekly chart.  Note, we’ve sped to the first three targets to the $80 level, and I think it’s likely we’ll see a bounce back to $82 here before we resume the downward plunge…

The weekly needs to work off some of that oversold condition, and this announcement is likely a good place for the dollar to make one last sham-stand before heading once more to target #4 at $77.00.

Upon leaving your abode, please be sure to wear your especially configured tam-o-shanters with the lead-and-tin linings, in order to stave off any negative emanations from the cloven hooves and knobby horns of Jamie Dimond and the rest of the Fed Owning Banditos. 

We need you to stay strong, and we have our officers out in Manhattan wearing their lids already.  Be apprised and vigilant, as fines will be issued for non-compliance.

____________________________

To answer some quick questions, yes, ANV is still a buy.   I would wait on CREE to see how their lower revenue announcement shakes out, but I think they’ll be fine.   I wouldn’t touch JAG with a sixteen-ounce ball peen hammer, no claw.    It looks like it’s going to $5 at the moment, and there’s far better choices out there.

Best to you all.

_______________________

Comments »