Strong Week for Stocks, Tiger Woods is Sorry

Saturday, February 20, 2010

  • The markets ended the week showing strength rebounding from Thursday night's sell-off after the Fed raised the discount rate by 25 basis points. The Dow gained 9 points Friday capping off a week that returned equity holders 390 points in the Dow (3.9%).

  • For the active trader, trading could not be slower. CNBC actually ran with a Tiger Woods Countdown timer Friday morning showing how little importance the Federal Reserve's actions were by just the next morning. As Woods began speaking, volume on the NYSE fell to its lowest level of the day trading 1 million shares and then skyrocketed to the highest levels of 6 million shares once he stopped talking. Seriously, how ridiculous is that?

  • And, for all his rambling about how sorry he is, he didn't give me the single, solitary bit of information I cared to know: when is he returning to golf?! Once you've 15 affairs, I'm sorry but you're not going to return to some ethical role-model in my mind for the rest of your life. But, I'll still watch you play golf if you can start winning again and make it exciting. Win a couple majors in exciting Sunday afternoon finishes and all is forgiven (if it's some crazy 25-foot putt to win, I'll even give you back your moral status).

  • I guess we don't care about Greece anymore until next month as they have been given a 30-day extension on their debt troubles.

  • The dollar continues its run looking technically strong. The DXY broke to new highs Friday trading above 80.50 for the first time since last July. While I did anticipate this bounce to some degree, I've been a dollar pessimist from a long-term perspective for quite some time. But, as this run continues it seems difficult to stay bearish when recognizing the relative weakness in many European economies. Overall, I still do think 2010 will be the year of currency dislocation and many trading opportunities will be available to Forex players.
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