THE LOONIE WATCHERS COMMENTARY FOR FEBRUARY 1, 2006
The market closed on February 1, 2006, showing some interesting changes in the Loonie and the $USD.
THE LOONIE
The Loonie has encountered lack of interest by the bankers, as shown by its lack of eneregy. No serious selling,
but no commitments either best describes the Loonie as of the close of 2/01/2005.
Traders were forced to question the Loonie’s current price in light of the $USD’s performance.
THE $USD
The $USD easily defeated an attempt on Tuesday to drive the $USD lower by the day trader's stop hunting!
The bankers snapped up the lower prices, and left the stop hunters high and dry by today’s close.
There are some very nervous traders sweating out tomorrow’s price action on the $USD.
This market action has forced the traders to reassess the real power of the current dollar rally.
THE NEW KID ON THE BLOCK!
The Big Question is what the new banker, Bernanke, has in mind? It’s doubtful that he will be content
to just be a caretaker. The US FED is the biggest player in the banking big league. We may assume that Bernanke is going to
make his mark.
The US FED has cleared the way for a new strategy with the retirement of Greenspan.
A new man for a new time may be the best description of Bernanke!
The international team of bankers is already aboard the new direction.
We’ll have to learn this new game through intelligent interpretation of the price charts, as we can’t
seriously expect the bankers to just tell us. After all, that would be telling!
WHAT’S NEXT?
A recent quotation from the recent Barron’s Roundtable by Marc Faber may
be appropriate here!
"But "commodities are an asset class for the first time in history" - something hedge funds and other investors
can no longer ignore, says Barron's Roundtable member Marc Faber, an early bull on gold. "I don't think this is a late-cycle
movement," he adds, noting that commodity cycles are typically long - from 45 to 60 years from peak to peak. The last peak
was in 1980, meaning the next one could still be at least 20 years away...
Of course, the economic winds could shift. If the U.S. were to get its financial house in order and dramatically
reduce its debt, or if there were unforeseen strength in the dollar, gold would almost certainly reverse course. But gold
bugs are hardly counting on that. "
Barron's. December 26, 2005.
Big Changes are coming, as Marc Faber has hinted at. Do your homework now, and
consider subscribing to THE LOONIE WATCHER! (copyright 2006) now to help guide you through the
coming changes in currencies!
Wayne N. Krautkramer onlypill@cox.net
https://onlypill.tripod.com/thelooniewatchercopyright2006bypitagorasinternacionalsa
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