Two Ways To Play: The Greenback Blues
Strengthen your portfolio in good times and bad.
Is the Dollar Done?
The dollar is overvalued and commodities are headed higher. So says renowned investor Jim Rogers. In a television interview with Bloomberg, he predicted the currency will rally into 2009, but will plunge shortly thereafter as policy makers seek to weaken it.
Eventually, he believes, the greenback will lose its status as the world's reserve currency. Rogers is putting his money in commodities and the Japanese. Why? Because "fundamentals have not been impaired and, in fact, are improved."
For more, check out Gold to Break Upside, Dollar to Break Down by Professor Lance Lewis.
From the Bull Pen: Bulls looking for a commodities play can consider Petrohawk Energy (HK). The stock's showing signs of a turnaround - and recapturing its 50 DMA would be another positive note. Sell stops can be set 2 points from entry.
From the Bear Cave: We've talked about the Bearish Dollar Fund (UDN). But dollar bears can also consider the Yen ETF (FXY). One might be able to catch the stock on a pullback toward $100.
Quick Check Around the World
Asian trading closed with the Hang Seng 3.38%, Nikkei 5.22%, Sensex -2.33%, Taiwan 2.55% and Shanghai -0.44%.
Glancing towards Europe, we see the CAC 0.18%, DAX -0.44%, FTSE 0.20%
As of 8:20 a.m. EST, S&P futures are trading +4 to 852, and Nasdaq futures are +2 to 1151.
A Look At Commodities
Crude oil is trading -2.90 to 51.64. Gold is -9.4 to 810.10. Silver is -0.900 to 10.255 and copper is +9.500 to 166.60.
The dollar index is +0.292 to 86.368.
On the Radar
08:30 GDP QoQ
08:30 Personal Consumption
08:30 GDP Price Index
08:30 Core PCE QoQ
09:00 S&P/Case Shiller Home Price Index
09:00 S&P/Case Shiller Home US HPI
09:00 S&P/Case Shiller Home US HPI YoY
09:00 S&P/CS Composite 20 YoY
10:00 Consumer Confidence
10:00 Richmond Fed Manufacturing Index
10:00 House Price Index MoM
10:00 House Price Purchase Index QoQ
Click here for the full trading radar.
Good luck today!
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