Sunday, December 18, 2011


Should the equity markets find a bid this week (as I believe they will) it will likely come at the expense of the U.S. Dollar which has rapidly become overbought in the short term and a crowded trade from a sentiment perspective. Assuming the typical kinetic asset relationships still apply with the dollar - gold and its emotionally unstable cousin, silver - will find a bid as well.
Just be prepared that this strength will likely be fleeting and a momentary respite from the larger forces working against a broken asset class (see Here). 

As always - stay frosty.