USD index

It seems the market finally tipped it's hand after quite a bit of chop.

 

Sold a little Nzd .7160. Added to Aussie short .7804. Feels like a big wave coming

 

Stopped on Euro only. Reshorted at 1.1747 smaller amount. Added to Aussie short .7810, usdjpy at 1.1302.

 

Stopped on everything. Wow did I have that all wrong.

 

Short USD against Euro, Aussie, GBP, Jpy. Took a little beating past few hours, still at it. My friend used to say, "Never fight someone who's crying and still wants to fight you (after you already beat him up once)."

 

Still don't see how the Fed is going to get out of this without damaging the dollar. If they stop buying their own bonds, that means more supply, right? Or tell me I'm missing something.

 

More supply of USTs, less supply of USD...

 

I don't get it. Isn't it one and the same? Ohh. . .they aren't printing money?

 

Flat. I don't like this market either way. I'll let it decide which way it wants to go.

 

Nah, they ain't one and the same... A UST converts a USD that you have in the present into a USD that you'll have in the future. So if there's more USTs around, all else being equal, it means that there's "present USD" sloshing around.