Jack the Pipper

I will share what I believe to be plausible rationales for the US dollar as we head into 2016—rationales that seem equally balanced and will allow for some will committed fence sitting.

BEIJING—China’s exports fell in October for the fourth consecutive month, as a once-powerful engine of the country’s growth continued to sputter in the face of weak global demand.

A little alliteration to punctuate a plausible picture of EUR/USD weekly…note the ongoing directional correlation between EUR/USD and the 2-year benchmark yield spread(blue line) in the chart below.

Like Oil Here? Then you like CAD here. There are good reasons why oil prices go lower from here.

The S&P 500 index may be setting up nicely for another big move lower. Presently it is correcting higher; possibly it’s that Joker—Mr. Market—sucking in more victims who listen to the buy and hold guys leading the bull charge again—thank you financial TV.

Should we just shut down our trading screen till Wednesday afternoon in expectation of a couple of days of backing and filling and intraday volatility in front of the Fed?

I think you know what I mean by the phrase “broken clock theorist.” If not, let me give you the short definition.

Chinese leaders made a big mistake. They trusted the forecasts of Western economists who assured them, at least implicitly, growth would rebound sharply after the 2007-2008 Credit Crunch as the big guns of monetary and fiscal policy were switched to auto-fire.

The news concerning China’s decision to devalue its currency could have broad implications for the global economy.

I realize it’s not fair to pile on, but there is a certain joy one experiences when the blather from the cocky prognosticators of dollar doom and gold love are proven so utterly wrong by Mister Market.