Beginning of the end of the US Dollar

China calls for new reserve currency

By Jamil Anderlini in Beijing

Published: March 23 2009 12:16 | Last updated: March 24 2009 00:06

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

Upside

I got an email asking about how far I think we can go to the upside. Well I did some projections over the weekend on based on some waves I was counting especially with respect to that 804/805 area. Since we broke it to the upside and filled the gap in that 820 area I am looking at a possible resistance up at the 940 area and possibly the ultimate push as most of you who have been reading the blog my projection of 1045( wrote about that number many times in Nov, Dec 2008).
It is very hard to trade a day where we gap up and never look back but whether it was the Geithner news or just a natural bounce in a oversold climate, one thing is sure we dont go up or down in a straight line and I expect up to back and fill in the mid 700 area of the S&P. As long as we hold that 745 area the bulls will be ok and the upside.
The 900 level on the S&P might come in very fast and that's my only fear as we might do all the gains in a short period of time that we have nothing left to do but dive.

We will see soon enough. Remember we should start the day up tomorrow but be mindful of the turn around tuesday phemomenon.


MARKETJEDI

$10 Trillion

WOW we are sinking into an abyss but what the heck the down is up almost 500 point. Amazing how stupid people are. The news today is not good on the banks, the are just pushing the paper around it is still there!!!! It is doing nothing positive and how will pay in the end the tax payers, just amazing

Gone 805

We blew pass 805 and went straight to the gap fill 820. AMAZING

Telling you this, the last week has just been one for the record book!!

DXD

I am buying 1/2 lot here $64.00.

Folks it is rough market out there dont follow these trades if you are not experienced!!!

805 Line in the Sand

805 is the number to look for before the close. A break of it higher could mean we get bullish shorter term and put the bear in hiding. On the other side if we challenge it and dont hold it might be seen as failure. Tie will tell.

Rocking Away higher-

As I said in the market thought - The bulls must recapture 800 before tuesday seem like that's what they want to do. My next projection upward believe it or not is 820.

GS

Short here @$103, for what it is worth

Monday

Well futures are up on Geithner plan but this is just pumping up a dead horse. If we do sell off most of this gap up we will definitely be setting up bearish as I dont believe there is anything left in the tank for the administration or FED to use. This week should be very interesting as we 'SHOULD' reverse last week uptrend but anything is possible as we are in a new related market.
Watch that 767 level early on and see how we react if we dip to that level.
I am feeling very sick and woke up with a fever again!!!


MARKETJEDI