If you were rocked/surprised/knocked off your/feet or simply shrugged at the dollar’s tumble down the backside of the mountain, you now know that the complexion of the taper scenario has changed, but truly has much else?
It’s a interesting morning of disappointment for dollar bulls alone. The Nikkei was up on Bernanke’s “taper-later-gator” comments, the U.S. equities markets are certain that they will have all the crack, errrr, liquidity that they could want to continue buying, heck, even gold is up, and bond bulls got a six month reprieve.
So now we must recalibrate WHEN the taper will occur because you know it will – and it seems that the market is not *worried* about it until next year. Fact is that despite the sell-off, the U.S. Dollar Index is finding support so frankly only near-term bulls were shaken loose from the tree. The charts reveal that 82.60 is a common level from the previous late-August highs of 2012 and we have a gap close overhead at 83.69.
I run through all my open positions (including the loser on my books) and I discuss the individual currency stories that are still intact despite the scenic route they will be taking courtesy the Fed. Perhaps I’m old school, but I liked the singular voice of the Fed versus the confusion of an era of Fed transparency and the chorus of Fed voices that I wish I could mute. It’s truly NOT doing us any favors my friends, and yet, no one seems to be able to say so…
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