HERE IT IS. TAKE IT!

The most pronounced and uni-directional move is underway this morning in the DXY. This is the op-ex, year-end move where currency traders must look to show how smart they are in selling and shorting the dollar. ALSO, our friends down on Maiden Lane are hard at work trimming the government debt on a dollar-denominated basis…

This action in the dollar, coming on the heels of a huge move higher in bond yields, is designed to bolster the collective bank balance sheet for year end. Without this cover, mortgage-gate would wreck havoc. Don’t worry, BAC won’t go out of business in 2011 either…

This dollar drop is leading to all kinds of commodity fun and festivities and it is trickling into stocks too. Deal flow is in a hurry before year end. Option expiration is Friday. Many books unofficially close for the year on that day. So profit taking is out of the question until then.

It makes for a perfect time to create the taxable event that I’ve been aiming to accomplish. The energy stocks, bought a few months ago when nobody would drill again, are up 30-50%. The Technology stocks bought when you were told the PC business is dead, are up a similar amount. These are my prime profit-taking candidates. Sure, Chinese Lotto and little miners have been all the risky rage. But don’t marry these bad boys and girls because they will bury you when you least expect it.

I’m sure there will be folks who tell me that I’ve got my head up my “you know what” because I’m not 200% on board. 100% is enough for me. I know your attitude is to just “buy the dip, you asshole”, but instead, I’ll be closing out the positions I bought when you pikers were cowering in your basement, long all kinds of VXX. Very few of you were able to swing it around 180 degrees and buy at the right time, like Dr. Fly, but then again you don’t have a time machine either…