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To add to the current banking problems Hugo Chavez
of Venezuela is lobbying for Latin American companies to withdraw their funds
from U.S. banks before they collapse. This is not a good sign because of
the current situation where many big banks could be close to bankruptcy or
lacking sufficient reserves to continue lending. I would not be surprised
to see some big problems arise in the near future. There seems to be
technical indications that there could be a rally in the next couple of
days. I have upside pressure being applied to the daily Dow chart. I
would look at an option strategy to take care of the volatility risk or use
volatility spreads that would be profitable no matter what the direction.
The volatility in the marketplace is creating great
risk as well as great opportunity for traders. The buy and hold strategy
will once again be tested. The question to ask yourself is whether the
dollar is a great buy in here or has it got a way to before it finds
support? It has been in an up move the past several days. Will gold
go over the $1000 per ounce level? There are certain conditions that say
it could as it is only currency that isn't fiat? The Swissy is partly
backed by gold.
I have done some work on the bonds (USH8) the
industrial average (INDU) and crude (CLH8) which you can check on.
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