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End Of Day Update: Dollar Tidbit
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End Of Day Update: Dollar Tidbit

by The MoleOctober 6, 2008

A quick note about the Dollar – in case you guys wonder – this is not a rush to ‘quality’, it’s the result of forced buyback of Dollar debt by foreign buyers. The debt is being called and that requires Dollar settlement. A huge amount of FOREX is occurring but is not safe haven Dollar buying. We also suspect very strong Dollar repatriation from abroad by US investment players.

Original source jsmineset.com.

FYI: Tomorrow FED chair Bernanke gives a speech at 1:15, the FOMC minutes are released at 2:00, and the Consumer credit report is released at 3:00.


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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  • BigHouse

    Buy Gold lol.Sell The $

  • http://moontrader.wordpress.com/ Moontrader

    Hey guys. Dollar here in Brazil skyrocketed 8%, due to massive withdraws from hedge funds to repatriate and cover for losses. That's what analysts and fund managers kept saying on Bloomberg news throughout the day.

  • gagelle

    Thanks Moontrader. Great analysis.

  • Bra

    who is callin the debt?

  • http://www.FinancingIdea.com Fork_Master_Serg

    the caller! ;-))

    I think it's just massive equities dump. When you sell stock( you actually buy dollar) you create demand.

  • http://www.FinancingIdea.com Fork_Master_Serg

    CPC is at March and Lanuary lows
    we might get September 19th type bounce soon? just be careful ot there
    http://forkoholic.com/images/cpclows.jpg

  • tomo

    When I: (1) collected a couple of weeks of data on put/call volumes from here: http://www.cboe.com/Data/IntraDayVol.aspx, and
    (2) broke the data down to create hourly volumes of put and call transactions (the data in the table is cumulative), and
    (3) charted it against the DJIA, on an hourly basis…
    I found that when the market falls traders tend to buy puts, and when the market rises traders tend to buy calls – with a slight lag showing up on the one hour chart.
    I concluded that this indicator is a follower and doesn't really say much – except that: 'we are in an extreme situation' – which we already know, given the price action.
    Has my thinking gone astray somewhere?

  • http://www.FinancingIdea.com Fork_Master_Serg

    see the price level changes yet p/c extremes within particular Bear market remain in the same area
    and I consider it a leading indicator, not to undermine your research

    see the smart money has to get out near the top/bottom while dumb money still buying/selling
    what's why it should be a leading indicator.

  • tomo

    BTW, I am really enjoying the forkology. The chart you have posted is the best yet. Doesn't it belong to Andrew? (and who's Andrew?). Somewhat appropriate for a devilish site of this kind… Is there a book in it?

  • http://www.FinancingIdea.com Fork_Master_Serg

    who's Andrew?

    I'm Serg and all charts are mine!
    prepared by me and copywrited!

  • tomo

    http://www.investopedia.com/articles/forex/05/A

    I'm really hoping this isn't news to you.

  • Bartholomy

    Are you expecting more bounce tomorrow ?

  • Steve

    This is an engineered squeeze on the dollar, brilliant, if you can take that perspective, but who does it help….the US citizen, I doubt it.

    Steve

  • Steve

    This is an engineered squeeze on the dollar, brilliant, if you can take that perspective, but who does it help….the US citizen, I doubt it.

    Steve