Wednesday, November 25, 2009

1 plus 1 = 3 ???

Another day that did not quite add up. Dollar got slaughtered today. Obliterated down over 1%. This has typically meant big up day in the stock market. Nope, only up slightly today. Financials were actually down and the Russell 2000 was flat. Oil was up but has gone sideways to down over the last few weeks.

The biggest loser today has to be Japan. The Yen was up 1.25%!! Talk about a Python grip. Japan is getting squeezed to death. Watch the Japanese markets tonight. You could have a big move down in Japan. At some point that spreads to the rest of the world.

Everything that is seemingly out of balance is getting more out of balance. Torquing is occurring.

2 comments:

Steve said...

A rising market on very very low volume. Not a good sign for the bulls.

gk said...

http://finance.yahoo.com/news/Group-Chinese-overinvestment-apf-2265935051.html?x=0&sec=topStories&pos=main&asset=&ccode=

This deflation is led by China. 10yr yields are reflecting that..

The final bubble of Fed will burst now. The reflation attempt (by USD debasing) won't change consumption habits in US.. emerging economies (like in India) are already facing high CPI..

If politicians (Obama in China) are saying that double dip can occur, then it will definitely occur because they are always the last one to say something bad in public..