Will the Dollar Survive the Week
The market soared
higher yesterday. Volume was unimpressive, but the bulls won the day
again. The market was propped higher by energy stocks and telecom, but
the buying was not broad-based like we saw last week.
The TradeMaster portfolio had a busy morning. Since the
market stabilized after last week's decline, I did not believe we needed
the amount of bearish positions as we held.
The hedge of
TYP protected us from a fast decline. And over the past several weeks the
market had two golden opportunities to have a rapid descent.
While the market may head lower in the near term,
there is also a very good argument for another new high.
It is possible (likely), that I will take on additional bearish
positions if a new high is made this week, but for now I would rather be
in cash as opposed to short. The position, TYP, was sold for a 8% loss.
But it's protection allowed us to buy 15 positions (10 winners) over six
weeks and 2 of which made over 50% profit.
We were able to nail down these outstanding gains largely because
I was able to stick with the rally that started in late August. Even
though a lot of traders were skeptical of that rally and repeatedly
called for a reversal, we stayed long and strong.
That’s because, quite simply, I know what to look for before a
rally reverses.
And now, I am going to share some of his trend-following secrets in
a special video seminar. It’s called How to Trade with the Trend
for Maximum Profits. It will air this Friday, March 4, at 6
pm ET. And best of all it’s completely FREE for TradeMaster
Forecast readers.
But I also added two new positions and both profit
from higher oil price. They were added to the portfolio holdings
yesterday to replace the quick 12% profit from REXX. All three were
covered in the weekend video which can be viewed for further analysis
right here.
While I expect the market to have a mundane week, the dollar should
have an interesting week as the impact of fiscal constraints
intensifies.
Within the
U.S. a study led by Senator Tom Coburn (R., Okla.), found billions of
dollars are potentially wasted each year on duplicate programs. Both
Republicans and Democrats are exploring ways to ease America's budget -
and duplicate programs should be a great place to embark. The U.S.
government has 15 different agencies monitoring food-safety laws, over 20
programs to help the homeless and 80 programs for economic development.
His study concluded that $100 to $200 billion is used in duplicate
spending every year.
Lastly, the European Commission raised its economic-growth forecast for
2011 and said higher oil and commodity prices will keep inflation above
the European Central Bank�s limit for most of the year. The GDP estimate
has been raised to 1.6% for the euro region, but UK GDP was revised lower
to 2% this morning. The central bank also noted higher than anticipated
inflation. Crude oil jumped 15% since the middle of February and added to
Europe's concerns about price pressures. Omnipresent global inflation
quickened in the euro region to 2.4% in February from 2.3% in
January, both exceed the 2% limit.
