13 March 2008 - 10:283/13/08 Trading Advice

By now it should be no secret that I am bearish on the dollar and bullish on the yen since I have been for months. A nice 3 cent move that I called for you guys yesterday night just as it started on GBP/JPY that I hope you were able to catch at least a piece of. After today’s nonsensical argument for a strong dollar by Paulson and the stuttering that immediately followed it expect the market to stabilize for a time. There are enough idiots out there to buy the manure he is selling about regulation and “strong economic fundamentals” in the U.S. This banter has helped the dollar gain against the Franc and Yen but now that both pairs are back to the levels they hit this morning after the weak sales data they are a short again. Look for USD/CHF to hit parity soon and USD/JPY to hit 100 and stay below it this time.