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QUOTE (southsider2k5 @ Aug 8, 2011 -> 08:44 PM)
The futures are down another 300 points past where they closed at 3:15. Crude oil is trading in the $76's and gasoline under $2.60.

 

So far the SP downgrade is going to be a great thing for the bottom quintile. :bang

 

Obama should run on the promise of additional downgrades.

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QUOTE (Balta1701 @ Aug 9, 2011 -> 09:05 AM)
Is it worth pointing out how those big moves in oil are almost totally divorced from how the dollar is moving?

 

Wait, what?

 

The dollar is up, energies are down. They had been for days. The dollar is down today, energies are up. Significantly if you look at them from the overnight lows.

 

You understand the relationship is inverse here right? Strong dollar buys more crude, weak dollar buys less.

 

 

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QUOTE (southsider2k5 @ Aug 9, 2011 -> 10:08 AM)
Wait, what?

 

The dollar is up, energies are down. They had been for days. The dollar is down today, energies are up. Significantly if you look at them from the overnight lows.

 

You understand the relationship is inverse here right? Strong dollar buys more crude, weak dollar buys less.

Dollar down against major currencies

 

The only one it's up against is the Euro.

But that decline left the euro well within its trading range of recent weeks. Meanwhile, the Swiss franc rose 1.6 percent against the dollar (and even more against the euro), reaching a new all-time high, and the Japanese yen rose sharply as well.

 

...

he dollar is roughly flat over the past month against a basket of six other major currencies, in contrast to its skyrocketing value the last two times financial crises flared, in late 2008 and the spring of 2010.

 

On Monday, as the Standard & Poor’s 500-stock index plummeted 6.7 percent, the dollar rose a modest 0.4 percent against the six other currencies. After a similar day of market declines in October 2008, the dollar index rose 2.3 percent.

 

...

Indeed, both the Japanese and Swiss governments have taken steps over the past week to intervene in markets to stop the rapid rise of their currencies — with little apparent success so far — to combat the damage done to their economies by rising currency values.

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The dollar index actually is what I am looking at. That is the overall dollar measure, instead of picking out individual currencies to make a point that really isn't true.

 

Right now the dollar is off 30 points while crude is up a dollar.

 

Yesterday the dollar was up 20, and crude was down.

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QUOTE (southsider2k5 @ Aug 9, 2011 -> 09:20 AM)
Absolutely. Which is also a reflection of which currencies are used most around the world.

 

As a matter of a fact, when countries like Iran make noise about dropping the dollar for Crude trades, they want to go to the Euro.

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So, I see that the Fed Statement says growth is coming in above expectation, inflation expectations are high, and in response they're adopting a tightening posture.

 

No wait, that's wrong...growth is below expectations, inflation expectations are low, but they're not doing anything.

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