Monday, October 19, 2009

Banks Doubled Down: Super Long Assets /Short USD

Simplified, the current worldwide trade du jour is short the USD,  long assets:  real estate,  paper, commodities , and equities .  That includes the Fed  and other central banks obviously. To call this a crowded trade is a colossal understatement.  Not even sure if "bubble" does it justice. A systemic roll of the dice.  The odds of an orderly exit are laughable.
Twenty Years Ago Today the '87 crash had a 2 month lead time from the mid August high. This market is not going to offer that luxury. Try 2 days.

The USD  may make new lows. Barely, like 75.00 It looks like the final stages of a -5- wave  down from 77.50 to complete a (5) wave wedge of greater degree down from 79.50 to complete a 5  for C. Whew.

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