Shorts might be saying to the market, "Tank you sorry m/f"! (I know I've said that before). However, that is just bad juju. How about putting a positive spin on it instead? "Go Dollar, it's your birf-day!" Basically the same thing .
There is a 30-year auction today that I'm sure most people will be paying attention to. Could be a pivotal day for the dollar, and the markets in general, pending the outcome of this auction. Perhaps the primary dealers (GS, JPM, etc..) , who are already required to bid, will show up with some levered TARP profits to buy some extra 30yr TP to cover the offer. Wouldn't surprise me. If the auction fails, oh no.
[Note] Watch your copper. PCU making new highs with lower momentum. Signals a possible reversal. Copper is targeting 2.50, but is starting to weaken at 2.40. A final burst to 2.50, while putting in negative divergences, would be consistent with a "top". The EUR/USD is going to be bipolar in the near-term until in it hammers out a direction. My personal take is 1.365 from a possible head-and-shoulders top on the hourly. However, there is an upward scenario (1.43) as well if it breaks above 1.417 that has me cautious. If the USD gets sold down (possibly as a result of BerTanke buying more m-BS) then that would set the stage for, what I see as, the final burst in commodities (and the market).
