The reason that the stock market fell so much today was because of China. They hold 1.3 Trillion U.S. dollars and they announced publicly today for the first time that they will sell dollars in order to diversify assets.
When the announcement was made, the euro gained a penny on the dollar in less than 4 minutes. In the world of currency trading, that is a monster move. It continued to rise throughout the session and put in what I think is an intermediate top. This is what caused the market to fall today. The declining dollar. Here is the usd/euro chart:
(Click for lager image)
The Japanese yen also had a similar move, but it has a more important relationship to the action of the stock market. The yen now determines if the U.S. market is up or down. And the dollar continues to move lower against it as I write this. If you thought today was bad, tomorrow could be worse if the yen breaches the 111.5 level and stays down there for any considerable period of time (30 minutes or longer).
(Click for larger image)
(Click for larger image)
You can still make money by putting your money in the right places. I know I sound like a broken record, but Jim Rogers has given investors many options to make money in this type of environment. The Japanese yen can be purchased through the FXY.Now, take a deep breath, calm down, and watch the video
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