Making the CALL : Oct 1987 = Jan 2008, if this one thing happens !!!

Discussion in 'Trading' started by Digs, Jan 17, 2008.

  1. Digs

    Digs

    What needs to happen.. for another 20% drop from here.SPX 1330, only one thing...

    REQUIRED : $USD TO FALL FAST !!!!!

    A fast falling dollar means the FED must protect the dollar with higher interest rates. And you know what that means !!!

    This is what happened in Oct 1987.

    Vix is warming up. Not at crash levels so FEAR has room to move.

    If you have USA assets and you want them out into cash of your own country ( say Japan or China), you must SELL asset and SELL USD.

    Going from USA stocks to USA bonds is ok. No $USD sell off.

    At the moment last report shows $USD inflows to buy USA assets, mostly from the Arabs.

    But watch out....if this changes !!!
     
  2. Fall where?

     
  3. This whole thing is already overblown. We are WAY WAY oversold.
     
  4. The dollar will be fine, but that doesn't mean you dollar-denominated assets will be.

    :D