There's one MAJOR CONUNDRUM in this whole "dollar plunging" scenario that I'm still working on.
In a nutshell, if the dollar plunges it will definitely raise the relative price of gold/silver. But...I still think it should also raise the price of stocks since(and we've talked about this before)it will take more dollars to buy 100 shares after the plunge than before the plunge.
But that also has to be juxtaposed to the other factors including, but probably not limited to...1. Can we trust the numbers coming out of the companies/stocks? 2. The recession and deflation will be pulling stocks down at the same time the weak dollar is pulling them up. 3. The strength of sentiment toward stocks gained by the administration's efforts to fix the economy through "bailouts", stimulus packages, job programs, interest rate adjustments, etc.
It's just not a simple equation no matter how you look at it.
Any thoughts on this end of the scenario? TIA
By the way...the markets are now bumping up against one of the old support levels which are now acting as resistance. It wouldn't surprise me to see another dip at the eod, but I really doubt we'll see new lows anytime soon.
It's about time for a nap, so I'll check in again later. No trading opps that I can find so far today. The market seems remarkably stable for the moment with a possible slight upward bias.
Obama's remarks and the Citibank bailout seem to have calmed things down for the time being. Have to wait and see what trend develops later today, this week(shortened), or next week.
News 
Market Data 
Discover 
