Whodunit? Sneak attack on U.S. dollar

http://www.politico.com/news/stories/1009/28091.html

"It’s the biggest mystery in global finance right now: Who conducted a sneak attack on the U.S. dollar this week?

It began with a thinly sourced but highly explosive report Monday in a British newspaper: Arab oil sheiks are conspiring with the Russians and Chinese to quit using the dollar to set the value of oil trades — a direct threat to the global supremacy of the greenback.

Is it true? Everyone from the head of the Saudi central bank to U.S. officials scrambled to undercut the story, but no matter.

With the U.S. economy on the ropes and America by far the world’s biggest debtor, investors aren’t feeling as secure about the dollar as they used to. And the notion of second-tier economies ganging up on Uncle Sam didn’t sound so far-fetched.....

.....So the piece by Robert Fisk of the Independent shocked currency traders around the world and almost instantly sent the value of the U.S. dollar spiraling downward and the price of gold skyrocketing to an all-time high, as a hedge against a weakened dollar....

So who wanted dollars diving and gold rising? In other words, who is Fisk’s source, and why did he or she want to tank the dollar? It’s the global currency version of the old Washington parlor game of speculating on the real identity of Deep Throat.

No one knows.

But one thing is for certain: With the price of gold jumping to $1,048.20 per ounce, traders who moved early enough stood to make millions...."



Read more: http://www.politico.com/news/stories/1009/28091.html#ixzz0TnM7NoXV

So this is not that shocking.

The Paulson/Geithner/Bernanke Bank giveaways have indeed steered the Dow and Nasdaq back into recovery. But it is not sustainable. We foudn that out in late August when the Wall Street news media started screaming that consumers were 70% of this country's economic base. And that they should start spending.

Then when the Wall St head honchos realized what the news media was saying, they put out the word: "Shut up." Because after all, the "recovery" is only based on the BailOut giveaways, and because the cosumers still don't have jobs. So shut up about the recovery needing them, or they might become aware of how they COULD BE a political force by getting out in the streets.

It only deepens the mystery.

no i don't. but i posted quite some time ago that the EURO was a SCREAMING buy vs. the dollar, and that one could simply buy the etf FXE if one did not have a forex or futures account, and that the dollar was primed to retrace off its false rally.

i will say i profited off this move.

but damn did i take 95% of my profits WAY too early.

even i didn't think the retrace would be this steep, this quickly.

every once in a while a screaming opp trade opportunity will present itself. i like to share :)\

there is no guru.

exit strategy is phenomenally important. regardless, the euro gained HUGE vs. the dollar after i recommended the trade.

but NO trader (and i know guys who are phenomenal trader) are always right, no trader routinely catches the exact top or bottom.

the key to trading is to cut losses and let winners run. every trader makes trades that lose money. this trade happened to make money.

but i repeat. the euro was a screaming buy vs. the dollar, it was a good trade call, i made money, and i hope some others took my advice.

Advertises Gold? Hmmmmm.

http://www.reuters.com/article/pressRelease/idUS238957+03-Sep-2009+PRN20090903

Hmmm

further drys up their biggest market, about 1/3-1/2 of their exports.