Monday, January 12, 2009

TRADING ALERT - Treasuries Again

I initially issued this alert on the January 6th with the Dow touching 9,100 and gold at $865. Treasury yields are moving higher as a write this, as more supply is dumped on previously-demonstrated insatiable demand.

Another significant blip in the liquidity drain is materializing. Expect virtually all asset classes to sell off.

Right now (9:20 EST), Dow Futures are only showing -6 points, gold has toggled below $830, and the dollar is embarking on another acute leg up, all reflecting stronger USD buying power which directly results in lower asset prices.

All of this is confirmatory for my published Dow target of the mid-6000s in Q1 2009.
Posted by fdralloveragain at 9:21 AM

6 comments:

  1. AnonymousJanuary 12, 2009 at 2:10 PM

    Thanks for the trading alert as well as your thoughts.

    ReplyDelete
  2. AnonymousJanuary 12, 2009 at 2:16 PM

    The thing that gets me is that, since nov 21, I never really saw a 'rally' of any trend changing significance beyond day trading and running the stops. Yet so very many bottom calls went out. I mean these people are all apparently convinced that the crash is over. The bottom has been reached.

    I rely on weekly and monthly charts for actual 'trend' changes and we never came close to a trend change since the NOV 21st 'BOTTOM'.

    It has really just looked weak. Unless we hit at least 9650 on the dow (and that is the minimum threshold), I can't say that we have seen anything approaching a 'rally' since Nov 21.

    ReplyDelete
  3. AnonymousJanuary 12, 2009 at 4:12 PM

    Spot-on prediction again FDR. What's ur feeling on financial sector 1Q-worse or better than general market?

    Ever in Tulsa I'll treat to best steak dinner ever - Jayhawk1

    ReplyDelete
  4. AnonymousJanuary 13, 2009 at 8:46 AM

    Who would have thought Citi is going bankrupt....again.

    ReplyDelete
  5. AnonymousJanuary 13, 2009 at 9:41 AM

    FDR JP Bill here I am very good at graphics if your interested in something hit me up and we can talk.

    ReplyDelete
  6. Chris SanchezJanuary 31, 2009 at 7:23 AM

    FDR...I called for DOW 7,200 before seeking an entry point with the caveat that I may revise that target lower. Funny...when I tell folks my lower target is mid-6,000's the laughter begins. When I remind them that I went to cash Jan. 3, 2008, the room gets real quiet.

    Thanks for your posts!

    ArmchairEconomist

    ReplyDelete

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