We know it’s never easy and there is no Holy Grail. But...

...we are big believers that after following the chain of price action, sooner or later, it all
comes back in some way to the rate of interest. Interest rates are the core of all things
financial, though the link may be seemingly distorted at times.

From Bloomberg this morning:
        “Credit markets are still creaking even after the biggest decline on record in the
        rate banks say they charge each other to borrow dollars.

        “The London interbank offered rate, or Libor, for three- month loans fell to 2.51
        percent today, from 4.82 percent on Oct. 10.”

That Day is Finally Here

November 4, 2008: Some of us might have been waiting for this day longer than others. Some of us may have been clamoring for it, while some of us may have been dreading its arrival. Either way, that day is here and a major change could be in order. That’s simply because ...

Today might be the day that marks the beginning of a legitimate US dollar correction!

Risk aversion ebbs this morning...Comdol time?.

Gold is sharply higher this morning...up $20 bucks. Stocks globally are doing well and premarket
SPU is bidding a bit higher. Oil is trying to turn higher.

Ebb in risk aversion means a flow of risk appetite by definition. And risk appetite may mean it’s
time for commodities, which have been body slammed, to make a decent correction; maybe of
the multi-week variety. Thus, maybe it’s time to own some Comdols again i.e. commodity
dollars, fist three letters of each word, for those not yet super-fx-trader slang literate.

This morning, we our reprinting Currency Currents past from 28 August 2007; it’s the “best of Currency Currents” if you will.

What is interesting is that our top key news event back on 28 Aug ‘07 was Barclays, a UK
bank that is in the news again today after sealing a deal to obtain funds from a couple of
places that still have some—Abu Dhabi and Qatar.

We particular liked this old issue because it lays out a thought process to help shield us
from a world chock-full of guru-ism, which is always a danger to one’s trading account.