23 January 2008 - 23:20Trading Advice 1/23/08

I still like the yen but I fear the irrationality of the stock market and what it means to the yen. Namely as it rallies for no explicable reason that the yen will decline. Sure there was some bargain hunting going on and irrational optimism to boot but I don’t buy it. These investors seem to think that the Fed can just wave it’s magic wand and voila! All your economic problems are now solved… if only that were true. The Canadian dollar looks like a good buy, it is just encountering some resistance at $1.0225 if it can break through that it will then try $1.0192 and then $1.0177 which are Fibonacci levels. After that the next stop is parity.