The dollar is now rolling on the ground while traders take their turns kicking it. Those employment numbers were the real deal and bonds are reflective the growth implied but neither higher yields nor economic growth is making the dollar look attractive. I've got to wonder if foreign traders are a bit worried by the data that American's cared more about their "moral values" than the economy. Especially because the economy has historically been a strong driver of the political process and lenders probably factored a continuation of that trend into their decisions.
So all the stocks that were up and immune to the great Oct '04 panic are getting plunked a bit. I guess it makes sense as positive break outs abound now and taking profits is usually an easy trade. Still not to fond of the market's short term prospects here and I will put in some effort trying to pick out some short candidates for Monday morning. They may be hard to find given the number of resistance levels snapped this week but it is worth a look.
I would keep an eye on the weak bond - weak dollar combo. Particularly with stocks so frothy. I have cost myself some money this week by not betting on momentum but I am sticking with that belief. There are just too many traders competing for each penny to create a stable trend.
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