There are just too many dollar bears, oil bulls out there. What could go wrong with these bets? OPEC might announce an increase in output, the Bush administration (less likely) could pump some oil from the reserves into the sytem and the European economy might not be as strong versus the US as the EUR/USD pair would lead us to believe. JPY/USD is another story, so a long JPY, short EUR could make sense. But to keep pushing the Euro higher against the dollar seems somewhat excessive at this point.
As for equities, I find it very frightening that stocks like GOOG/AAPL, RIMM keep climbing as if all the money in the world is being parked there for safe haven. Watch those small caps, a RUT break below 786 could signal a run for cash. That being said, there is enough negativity building to give us a bounce next week. Lets see what pre-opex action has in store. Day trading has never looked this good, so I suggest you play this game until the smoke clears.
As for equities, I find it very frightening that stocks like GOOG/AAPL, RIMM keep climbing as if all the money in the world is being parked there for safe haven. Watch those small caps, a RUT break below 786 could signal a run for cash. That being said, there is enough negativity building to give us a bounce next week. Lets see what pre-opex action has in store. Day trading has never looked this good, so I suggest you play this game until the smoke clears.
This entry was posted
on Friday, November 02, 2007 at 11/02/2007 08:20:00 PM.
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