[Travis McGee]

According to Barrons, Happy Days Are Here Again!

How many rosy scenario articles are in Barrons today? Sure seems like quite a run of rosiness. I wonder why?

[Toddsterpatriot]

Sure seems like quite a run of rosiness. I wonder why?

Because we're doomed?

[eyedigress]

One thing I have going now is my shares are increasing greatly. After the turn everything should look good. I’m in a high risk category and not recommended for the faint.

[CodeToad]

“quite a run of rosiness”

It’s their rosy red bottoms.

[TomasUSMC]

Don’t you worry.... that big rebate check is in the mail! It will solve it all.

[groanup]

How many rosy scenario articles are in Barrons today?

Gosh, you think Barrons is in on it too? They're in cahoots with Bernanke and JP Morgan?

[M. Espinola]

Maybe Barrons utilizes a different set of Bollinger Bands than the rest of us :)

[AndyJackson]

The dollar is going to rally why? The fed raised interest rates sharply or stopped printing lots more money (same thing)? Imports have dropped sharply? There is a sudden demand to hold dollars? Some folks who hold lots of long positions could liquidate them if they could only find lots of shorts who will throw in the towel? All those shorts who got in in the 83-87 range are now scared and will have to cover before they lose their tails?

If we turned the chart upside down and labeled it with our favorite worthless dotcom everyone here would be telling you to let the momentum run and you would be a fool to bet against the trend. Fundamentals argue against a PE of infinity to nothing. Never stopped the permatouts from pushing something to the upside before.

So what is different about this. The flipside of the dollar falling is everything else rallying. What folks don't like to contemplate is that we have had a free ride for 3 decades and don't produce anything that anyone else wants except agricultural commodities - and that is how you become a third world basket case is by relying upon selling farm produce.

[Gritty]

Looking at the dollar graph, there is no way I would touch investing in dollars unless I were going short. There is a long running, strong downtrend in place.

Even if the $ somehow managed a rally around 10% to the 78.00 range, that downtrend would still be firmly in place. The Euro and other major currencies are going to have to do a lot of backtracking even to see that big a move.

I do look for a short term rally here, but unless we do something big to help ourselves out - like deciding to massively drill for our own oil - I suspect the downtrend will continue at least to the 69.00 level, at which point the lows might test again. Might. We are really cruising in uncharted territory here...