The dollar just started rallying intraday. This rally may last one day or a number of days. The general trend for the dollar, however, is down. Thus, in the days ahead, pull backs in commodities and commodity-based ETFs (DAG, MOO, DBA, etc) are buying opportunities as the fed has made it clear that QE2 (quantitative easing part 2) is alive and well. The weak economy will spur the fed on to monetize more debt to keep yields low which will continue to prop up hard assets such as commodities and certain stocks. That said, precious metals have made big gains so are entitled to possibly take a breather here for at least a few days. Cloud computing and network stocks should continue their consolidation.
Dollar rallying
| Published: | 11 Oct 2010 15:07 ET |
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