Jack the Pipper

Liquidity is the mother’s milk for stocks. Quantitative Easing is providing lots of milk, it seems.

This falls into the category that it ain’t over till it’s over!

In our Currency Strategist newsletter last week I discussed a growing obsession with the second derivative as it pertains to economics.

Japan reported its first annual trade deficit in 28 years. But today’s Bloomberg headline regarding the release of recent exports numbers from Japan gave us this:

A quick note to start, the US Dollar Index broke above key resistance yesterday like a hot knife through butter. Next target appears to be 8900-9000.

The Aussie is getting hammered this morning on news producer prices unexpectedly fell 0.4% last quarter; consensus estimates were a 0.6% gain.

CB’s whacking Their Currencies Today. The two key central banks in Europe decided to knock their currencies down a few pegs this morning…

As the first headline above reveals, China grew at 6.1% in the first quarter. That number is slightly below expectations and it’s lower than Q4 2008 (6.8%).

The risk appetite trade was progressing nicely until news of US deflation hit the wires. Maybe now those so-called analysts who believe inflation is solely about money will finally see the light. Nahhh….

Feel free to start dusting off those champagne bottles now – it’s sounding like we’re going to have something to celebrate this coming New Year’s Eve.