Friday Outlook: The Dollar 'Returns'

The powers that be want you to focus intently on only the news they like. The powers that be remain trigger happy bulls who are playing from the big stack.

Therefore, you must yield and accept the spell bulls are putting you under. Hypnosis is a wonderful tool.

So, Thursday markets rallied from good news from semis and a sense that the Fed is now going to pause in rate cuts which will in turn cause Uncle Buck to rally and consumers to go on a spending spree. Okay, when I snap my fingers you’ll come out of this trance.

Volume was heavy despite what Yahoo Finance is incapable of calculating and breadth was positive but not a 90/10 day probably.














































Chucky the Consumer wants to shop so bulls believe. Try and stop him as he demands another sequel.







The big news from our perspective is that ProShares launched two leveraged inverse issues for both IEF (PST) and TLT (TBT). Why do I say this? Because it was over four years ago when we tried to short TLT and couldn’t. Try as we might, there was no stock available for retail investors to short. We complained and wrote essays about it. We even discussed it over lunch with ETF inventor Nate Most who tried to set the Fryguy straight. What could cure this problem? An inverse issue.

Now, I know you’re thinking maybe you don’t need a “leveraged” inverse issue. I understand, so do as ProShares CEO Michael Sapir suggested when speaking with him recently—do half. That way you’re not leveraged but have successfully hedged your bond portfolio or achieved the desired speculative result. Either way, it beats using options in my book.

So, thanks ProShares for getting these issues out!






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Comments

[Ames Tiedeman:]

Great charts.

2008 May 02 06:59 AM

[ArJe:]

The weekly chart analysis you use is a great communicator for those of us who find visual language a better vehicle for understanding than confounding commentary and the use of words that carry bias and opinion. I guess a picture is truly worth a thousand words.

Thanks for compiling the picture.

2008 May 02 09:44 AM

[User 150045:]

I second the above comments. Keep it up David

2008 May 02 03:13 PM