Thursday Outlook: Bye Bye Uncle Buck

Other than the ongoing bond bubble, the abrupt fall in the dollar is the other big story now. It seems investors are becoming more yield oriented and with Bucky yielding less with each passing day, they want no part of it.

Market trends can behave strangely, that’s for sure. Previously, investors punished the dollar in part because oil prices were soaring and now are dumping it as those prices have collapsed. That’s why it pays to be a systematic trend-follower sometimes since trying to figure out the whys and wherefores of market sentiment is too difficult to forecast.

True to form, the markets reversed course slightly today which frequently happens the day after a Fed decision. But market internals were positive while volume was on the light side.

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