Thursday, December 10, 2009

Decoupling of the Dollar and the Markets This Morning

Strange behavior as both the dollar and the markets are positive this morning. This also happened the morning that Employment numbers beat expectations on 12/4. Nothing as significant happened today. In news, Initial Claims were worse than expected, Continuing Claims were better than expected. But one item of possible significance was that the trade deficit beat expectations, improving from -$36.8 billion to -$32.9 billion. Regardless, the positive dollar this morning is what forced me to exit my position. It was a surprise to see the markets move back up while the dollar also continued up. This is something to watch closely. I will be keeping alert for a possible sell off in the markets.

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