I think we selloff, hard, on Monday. A classic case of buy the rumour (proposed bailout to save Wall Street and prevent a collapse of worldwide financial markets) and the news (bailout passes the house ans is signed into law). I don't care how many games the PPT attempts to prop up markets. Monday is end game and world wide crash. Forex opens in 3 minutes. Good luck everyone!!
Short the dollar, yes. Although I find it odd that the dollar is currently strengthening against the Euro and Yen...
I don't want to fight the trend just yet, but the dollar is going to be an excellent short as soon as there is any hint of a reversal.
I have no fucking idea what the market will do Monday. But I do think the potential of buy the rumour, sell the news is there. Time will tell.
The bailout plan might push markets up 2-3% but other than that the bear will rule wallstreet for years to come. DO NOT fall for any massive rallies. Sell into these rallies if possible. The markets are headed lower. Dow SUB 10k levels are coming. Dow 8000-8500 is a real possibility. This bailot plan needs alot more money then you actually think. $700 billion IS NOT enough. This bailout needs TRILLIONS of dollars.
I agree almost 100%, especially the intermediate term, six to nine months. I don't see how we can avoid 1100 SPX. The only thing I don't agree with in your post is that I can see the market reacting negatively to the news, and selling off overnight. All I see is more and more debt and continued bailouts. Somewhere, someone has to pay for it all, in a massively slowing worldwide economies environment, where income and therefore taxes are going to be drastically reduced. It will take a while for people to realize we are not in Kansas anymore. nitro
the dollar is rallying because credit is contracting globally. buy the dollar overweight the spx, sell rest of the world