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Wednesday, January 5, 2011

Wed Afternoon, 1/5/2010

At the open, I could not find a Green arrow anywhere in the commodity complex, but then the whole complex went to "mixed".  As this is written, the Dollar is strong, up over 1% at 80.31, while the Euro is down over 1%, trading at 1.315.  Gold is trading down 8.5 at 1370.3, Oil is down 1 at 88.38 and Silver is down 2% at 28.93.  The long Bond is down 1.5, trading at 3.43% and the 10 year Note is down .90, at 3.44%.  The Dow and SPX opened down, but have rallied on goods news from ADP which stated the 290,000 new private sector jobs were formed in December.  I can't believe anyone could have been surprised that a bunch of retail clerks were hired for the Christmas shopping season.

We issued a trading alert this morning as the Euro approached its trend support line at 130.60.  Momentum is still bullish, but has moved to "sideways".  With the strength in the dollar surprising again this morning, we will be watching closely for a trend change in the FXE.  We will post this afternoon a Dollar chart that shows there may be a real rally coming in the Dollar, which of course would have major implications for the equities market.

Best to Your Trading!


Bill

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