The Dollar On Fire

Discussion in 'Trading' started by Pabst, Jul 22, 2002.

  1. Pabst


    The dollar has had a substantial rally against the Euro this evening of almost a penny. Very surprising in the wake of todays U.S. equities performance. Could this be the wild card for a big rally in stocks to-morrow.
  2. Babak


    Pabst, I was thinking along the same lines. I was reading in how the dollar was surprisingly resilient in European trading hours on Monday.

    Hmmmmm..... VIX stretched almost as much as Van Halen's old pants, the psychological indicators (AAII BULLS/BEARS), the Rydex Bull/Bear ratio, both pointing to fear.
  3. Pabst


    How's this one for oversold. The 14 day RSI on the Dow futures is 13!!
  4. absolutely...of course, I've come to expect just about anything these days as correlations seem to be in tummy feels like one feels after dropping down the rollercoaster...preparing for that bounce...can't help it...I'm on my a cat on the prowl...mindful that I might want to fade myself...more later
  5. Maybe in the short term we'll get a bounce (although I suspect it will be wednesday), but the fact that BOJ, FED, and BuBa all intervened to support the dollar this morning puts the writing on the wall.

    My guess is everybody's (i.e. international holders) are trying to head for the exits in as orderly a fashion as possible..
  6. man, this kind of talk is just feedin' my fire...
  7. Pabst


    Not exactly like European markets are so great either. FTSE closed at 1996 levels today.
  8. Rigel


    When the dollar rallies like this does it have any implications for the US equities markets? Does it mean that we might expect a rally tomorrow or Wednesday?
    My naive beginner logic tells me that because people want the dollar tonight that they also want US equities because they are really one and the same. Anybody?
  9. LeesonTrader

    LeesonTrader Guest

    It means I have to poo more...and make more $$$
  10. exce26


    The $ rally is short term event.
    There are too many worldwide corporations(Europe, Asia) who wanna be light on their current $ position.
    #10     Jul 23, 2002