Tuesday, April 17, 2007

 

The English Pound is over $2.00

That is, it takes more than 2 bucks to buy a pound. Everyone should be an international investor and part of that is keeping an eye on currency rates. Apart from that is the fact that America is dependent on foreign investors to finance its economy. Crossing big, round numbers like $2/Pound catches peoples attention and a run on the dollar is one of the worries I have for our economy. So far, our equity markets are holding up. If the dollar keeps falling this will be a problem for stocks.

As you know I was stopped out of the short position in the Dow at 12,670. I think that a new high in the Dow is inevitable. We were briefly in new high territory today but closed just under. Expect to see it in the next week if not tomorrow. I am watching the stock market but really have no opinion at this time other than after 4 years this rally is a little long in the tooth. Even so, there is no good entry points for a long or short trade at this time.

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