Friday June 30, 2006 - 10:48:14 GMT
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Black Swan Capital - www.blackswantrading.com
â€śInflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.â€ť
FX Trading â€“ Ben Blinks
A surprise! It is the stuff that moves prices most. Based on expectations, built by Mr. B and his minion, the FOMC blinked big time. Tough to say without the crystal ball whether or not it was the right thing to do for the economy, but first blush it appears it hasnâ€™t done much for the Fedâ€™s reputation or the much vaunted idea of â€śtransparency.â€ť The only thing apparent to the market is that Mr. Bernanke changes his mind a lot within a narrow span of timeâ€”and we know its all about perception.
Perceived, as of yesterday, as Gentle Ben again, the speculative juices are ignited as players â€śknowâ€ť the Bernanke blink was really a nod to the alchemy of asset bubble-ology in order to support the economy: buy stocks, buy bonds, buy metals, and sell the dollar. Case closed!
One day doesnâ€™t make a trend, but it can launch one.
New theme: A weak Fed and a concern about a slowing economy in a market that really doesnâ€™t like the dollar with the added kicker of a more aggressive ECB.
US$ Index daily chart below:
Jack Crooks, Black Swan Capital
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