US Dollar Weak...Again?
Every year end, most people will find a reason to celebrate in a x'mas party. Even when there is no big heap to enjoy, this is still a festive season to relax and enjoy the companions of family and dear ones!
This year, many men-in-the-streets mentioned the global meltdowns have killed their party mood. Many are in debt. Nevertheless, in our opinion, there is still a reason to celebrate if you have opened some good long positions at the bottom!
Since global central banks and governments have injected gigantic funds to rescue the packages, with interest rate have been cut almost worldwide to stimulate the equities. All jobs have been done. We just have to wait and believe the bear will be digested over year-end soon after they realized the markets have reached the bottom.
In our studies, we believe these are the instruments that will recover just for this year-end x'mas - mid Jan 2009. It may help you with better appetite and forget about the pains temporarily.
1) EUR/USD will potentially recover above 1.4000
2) GBP/USD will potentially recover above 1.8000
3) USD/JPY will potentially recover above 103.00
All stock index from Northern America to Europe to Asia to Pacific Asia will recover about 30% - 50% appreciation from this year low. Of course, some fast profits can be made from the quicksilver traders with clear-mind!
However, be prepared to move into a long-term recession in 2009 and we expect another whip-lash to surface at end of Q1 of 2009. The aforementioned recoveries are meant for your x'mas party but not for your portfolio picking.
Bargain hunting will be ideal to begin from Q2-Q3 of 2009. Stay tuned with us till then!
Recently,
Have a good weekend.

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