The Dollar is Due for a Deadcat Bounce

[MNeagle]

Friday, October 1, 2010

The Dollar is Due for a Deadcat Bounce

Posted by TraderMark at 11:32 AM TweetThis


Bernanke has declared all out war on the U.S. dollar.... things are so bad even as Europe's peripheral countries struggle with massive debt loads people are fleeing the green paper and running into euros. Things are so bad, despite government intervention in the currency market for the first time in 6 years by Japan to strengthen the yen, people would rather "fight the Japanese Fed" (effectively) and buy yen. It is pretty pathetic.

With that said, at some point the dollar has to perform a technical bounce from oversold conditions - it might last only 3-5 days but the rubber band is being pulled to a massive extreme. I may soon "fight the Fed" on this one for a short duration trade as the oversold readings are reaching levels seen at other bounces...

http://2.bp.blogspot.com/_vIR9lEpVYYw/TKX-6WPQrpI/AAAAAAAAOkc/CCMnBzQ1viY/s400/uup.jpg

link (http://www.fundmymutualfund.com/2010/10/dollar-is-due-for-deadcat-bounce.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FundMyMutualFund+%28Fund+my+M utual+Fund%29)

[Horn]

The Dollar is Due for a Deadcat Bounce

oversold readings are reaching levels seen at other bounces...



Well there ya go, I wonder if the writer was actually taking him or herself seriously at the time it was submitted?

Do they get paid for this stuff?

[Ash_Williams]

Things are so bad, despite government intervention in the currency market for the first time in 6 years by Japan to strengthen the yen, people would rather "fight the Japanese Fed" (effectively) and buy yen.

Just me or did that make no sense?

[Horn]

Things are so bad, despite government intervention in the currency market for the first time in 6 years by Japan to strengthen the yen, people would rather "fight the Japanese Fed" (effectively) and buy yen.

Just me or did that make no sense?


Yeah, let alone the start & finish contradicting one another, the body was all contorted too.

Its more confusing then one of my posts in the conspiracy sub-forum. ;D

[mick silver]

it look like gold and silver is on a good run is this happening because of the drop in the dollar

[Horn]

it look like gold and silver is on a good run is this happening because of the drop in the dollar


Yeah, and this guys charts even line up for a future bit dollar down.

But why even get technical when you have all this confounded & obscure goodness? 8)

[Cebu_4_2]

Head & shoulders pattern with a gap at 77.xx

I certainly would not be dropping my own money into it.

[Horn]

Someone must have told him to write that, I can't believe the human mind is capable of those leaps all on its own.

[ShortJohnSilver]

Things are so bad, despite government intervention in the currency market for the first time in 6 years by Japan to strengthen the yen, people would rather "fight the Japanese Fed" (effectively) and buy yen.

Just me or did that make no sense?


The Bank of Japan (BOJ) aka the "Japanese Federal Reserve" is trying to weaken the yen to give Toyota and other big exporters some breathing room - every 1 yen change in the exchange rate costs Toyota millions of dollars in profits.

However in spite of BOJ deliberately trying to weaken the yen, it is still not dropping in value against the USD. Thus he is saying that yen buyers don't think that BOJ intervention matters and are buying the yen anyway.

[Ponce]

Like I said before "Once the coat and ties (ie: the banks) looses control of the precious metal it will then go up".........I have read today in three different places that that's what is happening now.

[kregener]

You can't swing a dead cat without hitting a financial prophet these days...

[Ash_Williams]

The Bank of Japan (BOJ) aka the "Japanese Federal Reserve" is trying to weaken the yen to give Toyota and other big exporters some breathing room - every 1 yen change in the exchange rate costs Toyota millions of dollars in profits.

However in spite of BOJ deliberately trying to weaken the yen, it is still not dropping in value against the USD. Thus he is saying that yen buyers don't think that BOJ intervention matters and are buying the yen anyway.

Oh I get that... it's just that he said "strengthen", not weaken. I couldn't figure out if it was mistake or if he was trying to imply something.

[bellevuebully]

I could see a technical bounce happening. The article is correct in stating that it has gone down at an unsustainable clip.....as far as the medium goes.

[Horn]

I could see a technical bounce happening. The article is correct in stating that it has gone down at an unsustainable clip.....as far as the medium goes.


I didn't see anything about the medium term in there, & the japan deal was stated improperly as well, as far as I can tell.

I guess I'm dyslexic, or something?

[Cebu_4_2]

I could see a technical bounce happening. The article is correct in stating that it has gone down at an unsustainable clip.....as far as the medium goes.


if you scroll the mouse when on the chart it expands farther, and yes a bit lower too.

[bellevuebully]

I could see a technical bounce happening. The article is correct in stating that it has gone down at an unsustainable clip.....as far as the medium goes.


I didn't see anything about the medium term in there, & the japan deal was stated improperly as well, as far as I can tell.

I guess I'm dyslexic, or something?




I'm sorry, I didn't express myself very clearly. I kind of meant the median rate at which things increase and decrease in value.

[Horn]

I could see a technical bounce happening. The article is correct in stating that it has gone down at an unsustainable clip.....as far as the medium goes.


I didn't see anything about the medium term in there, & the japan deal was stated improperly as well, as far as I can tell.

I guess I'm dyslexic, or something?




I'm sorry, I didn't express myself very clearly. I kind of meant the median rate at which things increase and decrease in value.


Gotch'ya.

I see your point for a hiccup, but as far as his assesment for a "dead cat bounce" its still too soon to tell.