Dollar Shrug! No surprise.

Is Mr. Geithner speaking today? He is becoming such a joy for dollar bears, as John Ross mentioned in his closing to CC yesterday. And the dollar doom and gloom crowd is smelling blood in the water; rightly so!

There are a lot of short dollar trades on it seems. We surmise Pimco has a big dollar short position given Bond King Bill Gross’s recent public musing about the US may lose its AAA rating. Comments like that shouldn’t be a surprise to anyone given the US government’s desire to take on the role of global stimulus King instead of just worrying about getting its own house in order—pathetic!

Trading the News, Killing the Fundamentals

Chock it up to the instantaneous transmission of information; that’s the reason for such near-term, news-driven price action. It doesn’t matter who you are, if you want up-to-the-second news and prices, chances are you’re going to be able to find it somewhere very easily.

Stocks and need for risk

I commented to a very smart and savvy friend via email yesterday: “Late move against the dollar today.” His response: “Investors need/want risk.” It is the type of response Luke Skywalker would have likely received from Yoda, in Star Wars. I am still pondering the deeper meaning of “investors need/want risk.” But do I really need to ponder? Can’t I simply see it? Absolutely! It’s called the stock market.

Don’t Let the Facts Get in the Way of a Good Story

The second ‘Key News’ headline I included above is the type of news item I consider in formulating a fundamental view of the economy and markets.

The first ‘Key News’ headline I included above is the type of news item that says “forget the second news item, you idiot; bad news doesn’t matter anymore.”

So let’s not let the facts get in the way because, really, the market is wearing rose colored glasses ... and love’s what it’s seeing.