Jack the Pipper

I am constantly stunned and surprised at the pronouncements that the worst is over and the World Recession is at an end.

Central bankers have made it very clear they are leery about taking away the punch bowl. Mr. Trichet laid out the ECB concerns and potential paths in an editorial appearing in the Financial Times today.

As with most weeks culminating in a US Nonfarm Payrolls report, this one started with some decent price action but will probably become more confined as tomorrow’s report draws nearer.

As I said, I don’t often watch TV. I know many do and seem to find it helpful. For me, it creates confusion. Watching the market each day is enough confusion for me.

In our analysis of currencies we’re constantly reevaluating the growth and interest rate differentials between countries. The reason is simple: better growth and higher interest rates make investing in one currency, relative to another, more appealing.

Chinese stocks got whacked overnight, down 6.7%. Will it matter? If the story about China finally increasing domestic demand proves true, evidenced by increasing exports from the Asian countries into China, it could likely blunt any negative impact of falling stocks in Shanghai.

Somebody flipped the switch at 10:00 EST a.m. yesterday, as oil surged and the buck sank sharply

Here we are … always ripping on China for their notorious stimulus package that is the reason behind their economic good of the last four or five months, always lambasting the analysts who keep touting China’s recovery thanks to stimulus and lending.

If China is the spark for global demand, why are Japanese exports to China still in the proverbial toilet? If Europe is on the road to recovery, why have Japan exports to the continent been crushed?

Yesterday the European currencies struggled while the commodity dollars firmed up … that is until US stocks began rolling over late in the session to ultimately finish the day flat. The dollar strengthened.