How to play the dangerous dollar
Andrew Snyder (November 12th, 2009) Writes:
Baltimore – (TFN): The dollar is a dangerous entity these days. Never has there been such a globally important currency with as much political and financial manipulation.
The distortions from reality are mind-boggling, yet all of us depend on the status of the simple fiat for our financial wellbeing.
The person with the most skin in the dollar game is, no doubt, President Obama. The nation’s economy hinges on the fate of the greenback and the White House knows it. That is why it is doing anything it can to slow the slide.
Even if it is entirely psychological.
Today, reports are flowing from Washington that show Obama may have plans to use up to $210 billion in TARP money to lower the nation’s ever-increasing deficit.
It is creative accounting at best and a $210 billion bribe at worst.
While the average Oprah-watching, Crocs-wearing American won’t take a second out of their do-nothing
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Van Eck Global’s Market Vectors unit has set itself apart by targeting underrepresented niches in the exchange traded fund market. It hit a homerun with its Indonesia Index Fund (IDX Quote), introduced Jan. 20.
Coal was one of our best performing sector groups in latter 2007 through summer 2008. While much of the focus of late has been on natural gas, the coal stocks have been ripping in even larger magnitude. I was a bull on coal over natural gas (although the market in its student body left trading simply moves all commodities together) because of the portability of coal over natural gas. We were early on this theme as the market was so focused on oil stocks at the time, and made a lot of money [Dec 6, 2007: Coal Stocks Quietly in Bull Market] I wrote a bevy of pieces about this 1.5 years ago… but again, the market is not very granular nowadays; it likes big sweeping themes that are simple: i.e. commodities good.
Stock markets spiked higher early and added to the momentum after the Fed non-announcement. However, there was plenty of profit-taking from the highs of the day into the close.
Typically a Fed-day yields heavy volume but that wasn’t the case today as volume remained relatively light. Breadth was extremely positive.
Markets never make sense and this is when hindsight kicks-in to provide logic. You get terrible GDP data (dare we say “worse than expected”) and you’d think well, that’s it for this rally. But, the bulls still have the tape. They looked inside the numbers and spun low inventory data as bullish since businesses will have to restock. Or will they? That’s not for us to say.
Furthermore, it’s the end of the month and time to get out the green ... 
