Be careful out there today folks.
Word is there is a lot of lot of mutual fund selling thats going to occur today. Many stocks have dropped below $5 during this massive selloff. This in turn is triffering another round of selling by mutual funds because many aren't allowed to own stocks under $5.
The bounce has reversed this morning, and the mutual fund selling could provide us with another ugly day today.
I will be back with a recap later. In the meantime, check out Peter Schiff. One of my thoughts lately circles around the dollar. Peter touches on this, and I also believe the move in the dollar is way overdone. There is no fundemental reason for the dollar soaring like this.
The one theory as to why the dollar is strengthening is because the world is more screwed than we are so money will continue to flow over here.
This is hardly a strong thesis. Fundementally the dollar should be severely weakening based on our ridiculous bailout spending, our weakening economy, and interest rates that are hovering near zero. I am starting to believe the speculators have piled into the dollar trade just like they did in oil. As we have seen all year, when the speculators pile in, the trade usually ends up turning into a disaster. Oil/housing anyone?
The play here would be to buy some metals. You buy them based on a weakening dollar versus any fundementals in gold or silver.
Good luck today!