2010 Forex Traders Adage: Buy It and if It Moves, Sell It
The LFB submits:
Global markets are absorbing a period of weakness that has equity and commodity sentiment placed firmly on the short side of global trade, and breaking a three-year inverse correlation that has allowed the dollar index to also be sold lower. A technical swing point of note in regard to global risk tolerance will be 1105 holding as support on a weekly S/P close, which may just help to stabilize the volatility a little.
The move out of the USD Up/Equity Down correlation, and vice versa, seems to have a lot to do with inflated Treasury note values, dropping U.S. yields, and question marks regarding the sustainability of American debt levels. Ironically, a lower value Usd may help in the very near-term to balance the twin deficits of the Trade and Current accounts.
