The gap is closed...
by, 6th-June-2009 at 02:01 PM (734 Views)
As a follow up to my earlier view on the US$/DXY index, here's the chart. What's next?
1) expect a pause after the succession of gaps, but if the rebound were to continue, there's a every chance that the other competing, riskier assets such as equity and commodities will be in for some "adjustment".
2) the local equity market in the last few days kind of remind me of those halcyon days where everyone is feeling and acting like a winner... no shorts, all longs, sure bet and can't lose?
Quite a strong contrarian signal, I reckon.