The dollar was hammered on Friday and broke through support levels against many currencies and alas, the Sunday night trade in America (the Monday Asian and European session) carried the same tone and hammered the dollar even more.
A few currencies are at their highs against the dollar. The AUD/USD and USD/CAD:
The up trend is the same for the other currencies against the dollar, they just may not be as close to their highs as these two.
Typically this is a good sign for most equity sectors and of course the commodity sector. Let's take a look at VALE which had a very nice breakout in the past few days:
The stock has retraced over 61.8% since bottoming in March with the rest of the markes. Its old highs are in the 40's from 3 years ago. Will it run straight to that point? I guess it depends on how weak the dollar becomes.As far as our daily look at socially responsible stocks go, I picked one of the bellweathers, FSLR which has a very interesting pattern given the strong uptrend in the broad markets:
That is a very bearish pattern as the stock is making LOWER highs and pressing into its lows. It looks to be at resistance right now, so we will see if it is rejected.
For all of you skiers out there, I will give you a weather pattern that the Wasatch Skiers are hoping for. It is called the Sundance effect. Most Sundance attendees come unprepared for heavy winter snows and all of a sudden, it DUMPS! They flood the retailers looking for hats, gloves, scarves, jackets, boots, etc... BUT, they aren't big skiers. The slopes are empty (see Deer Valley) and the snow is plentiful. Cross your fingers for the same as the Wasatch could use it this year.
If this pattern doesn't come to fruition, put on your carving skis and rip the groomers. The days are starting to get a little warmer and longer and catching some people watching at the "Silver Lake Beach" is always a fun spectacle.
Happy Trading and Be Environmentally Cool with Locals Have More Fun Apparel.
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