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Written by Brad Zigler
Wednesday, 04 March 2009 12:03
Real-time Inflation Indicator (per annum): 7.0% (New Low)

A 2.2% year-over-year increase in gasoline demand reflected in this week's U.S. Energy Department inventory report seems to belie dire prognostications about the U.S. economy. Last year, gasoline prices were on the rise, just as they are now.

Crude oil prices moved steadily higher overnight after leading the petroleum complex rally in yesterday's NYMEX day session. Tuesday's trading ended with a 3.7% rise in oil prices. Gasoline and heating oil futures rose 2.6% on the day.

Traders apparently sensed the oil supply situation in anticipation of the report. This morning's ...

US Dollar Index yesterday touched its highest level in nearly three years. Not since April of 2006 have we seen the buck this strong versus this particular basket of currencies.

Somewhat disconcerting for dollar bulls, however, was the big reversal we saw play out over the course of the trading session yesterday. Not only did the buck finish ...

Click on the following link to view the latest issue of Black Swan Currency Currents in PDF format.

By Roger Nusbaum, greenfaucet.com

Michael Kahn from Barron’s has written recently about apathy as being an important marker for the end of a bear phase. He is clearly correct about apathy being an ingredient but I think it is deeper than that. I would add demoralization and disbelief.

After yesterday’s pop, markets today are down a lot which is demoralizing for a lot of folks. GE is around $6, Citi is around a buck, Wells Fargo is way under $10 and there are more stories like that. The weariness and sense of defeat created by this type of action adds up to demoralization of market participants. Demoralization is not anger, although plenty of people are angry (even Ben Bernanke apparently), but more of a sad acceptance ...

A Ray of Hope for Stocks?
By Ed Ponsi, FXEducator.com

Since the middle of last summer, one of the most reliable currency trades has been to short GBP/JPY, EUR/JPY, and/or USD/JPY on rallies. These currency pairs have had a strong correlation to the equity markets since the early part of what we used to call the "subprime mess," so as stocks fell, these pairs fell along with them. But now we are seeing this correlation fall apart, at least temporarily. As the stock market continues to plunge, reaching depths not seen since the 1990's, several currencies pairs that feature the Japanese Yen appear to be staging reversals. In fact, GBP/JPY appears to be forming an inverted head and shoulders, a bullish formation, ...

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