Friday, October 1, 2010

Inflation Friday

Gotta be quick today folks.  Heading away over the weekend. 

We are seeing lots of inflation trades today as the market pounds the currency while it awaits a potential QE from the Fed. 

This was a disastrous week for bucky:


Quick Take:

Gold moved to a new record high and oil topped $81 a barrell as the dollar sold off hard.

Folks, the Fed is rapidly getting backed into the corner.  It's as if the market is pulling a Dirty Harry and daring the Fed into pulling the QE lever:



Stocks are pretty flat on the day as the computers continue to trade with one another.

I would ignore stocks right now and focus more on the currency and bond markets.  This is where the real action is.  You can't really read into what the stock market is doing.  It continues to trade erratically.

That's it for today.  Have a great weekend.

4 comments:

getyourselfconnected said...

Oil is starting to creep into my "uh-oh" zone for the regular working person. Oil over $90 is going to leave a mark at the pump and unless everyone sells their AAPL stock to buy gas things are going to get harder.

Have a great weekend and Go Steelers!

(yeah, I may be jumping on that bandwagon, they have shown some real toughness winning without their QB)

Anonymous said...

Just read this. Thought Jeff would find it interesting if he hadn't already read it.

http://boombustblog.com/reggie-middleton/2010/09/28/this-gloomy-bloomberg-housing-article-is-not-gloomy-enough-and-would-be-gloomier-if-all-of-the-facts-came-to-the-forefront/

Jeff said...

Get

Yup. Bet the Fed might start thinking twice about QE if oil keeps rising as the dollar falls.

Thrilled to say he least with the steelers. When ben comes back look out!

Jeff said...

Anon

Thanks for sharing. I love reggie. He was on bloomberg a few weeks ago. He was great.

I plan on doing a post this week around the foreclosure stoppages by all the banks.

This has the potential to b a nightmare for housing. More later