Is it wrong to be betting on the US Dollar now.

I just got through read an article relating to the US dollar, Euro interest rates and Gold. It was a very interesting read but I can't copy and paste it here as it is a copy right article. The basis of it was explaining the ECB decision not to lower interest rates as they see significant inflation since last autumn. The writer proclaims that the ECB is reluctant to follow the U.S. Federal Reserve in cutting borrowing costs as soaring food and energy prices drive inflation above 3 percent in the 15-nation euro region. The International Monetary Fund estimates economic expansion will weaken to 1.4 percent this year from 2.6 percent in 2007 after the U.S. housing slump pushed up the cost of credit worldwide.
Why is this important? Well the writer of the article is stating his claim that the Euro will go as high as $2 against the US dollar and this will consequently lead gold prices to $1650, if that happens. I am keeping a close eye on this as this I believe will have drastic consequences to the US economy.

Market lifeless

Market is so dead today I wouldn't be surprised if we match monday's volume as the lowest volume day of the year.

TRADE CALL: SKF OUT

Out SKF +$5.60

TRADES

How is IPI doing?
How is SKF doing?
How is FNM doing?
How is C doing?
Slam dunk here!!! we take no loser only winners. Been singing the same tune forever any time FNM trade above $30 it is an automatic short. Yesterday run to almost $31, you should have shut your eyes and short , period.

Oh we have so little faith when we see SKF down. New highs on the year that's what I have been saying and I will stick to it. +$6 today. I am up almost $4 on my average down on that stock.

IPI I am watching closely down a buck but I believe it will go to it highs closer to its 30th day of trading since it is a new stock.

Citibank, oh poor citibank. Constantly hearing the talking head saying buy buy buy . I say short short short anytime this thin reaches anywhere near $26. I still calling this stock to new lows sometime this year.

Stay Tuned.

IPI

IPI is finally looking good. Lets see what it does in the next few day. Still think it has higher to go, just had a bad entry on it

S&P

Well folks the market is just shrugging off the bad news in the economy. Yesterday news that last month was the highest month ever for bankruptcy filings did not impact the market. Folks we are once again in irrational exuberance. Goldman Sachs said yesterday oil should reach 150-200 in the next 16 months, does anyone know what that would do to the economy. I can tell you! It would slow it down to negative growth for sure.
I think we are almost close to the top here in the markets. I am looking at that S&P 1455 number, which is 35 points away as very strong resistance and will set up shorts from there. FNM had terrible numbers and after the stock opened down $2+ point it rallied. Ok lose $2 billion in 3 months and the stock rallies, this is so funny. FNM is nothing more than a $15 stock and I will short it again up here.
Stay cash heavy here folks because we wont stay irrational for long. If you are heavy on the long side except for the commodity stocks I would be scaling back here.

OIL

Today Oil made all time high. I just did some projection and Oil has the potential to goto $138. I hope my readers are buying smaller and more fuel efficient cars because it will only get worse at the pumps