Picture du Jour: Weak hands are heavily long the greenback

 EmailPrint This Post Print This Post

This chart below, courtesy of sentimentrader.com (via Jordan Roy-Byrne on Wall St. Cheat Sheet), shows that speculators are more long the US dollar than at any other time.

“Now this isn’t necessarily bearish for the dollar in the short-term. However, it means that when the dollar turns down again, it is likely to be a huge leg down as there are a lot of weak hands that will sell on any sustained weakness,” said the report.

Referring to the commercial traders, Roy-Byrne remarked: “The strong hands tend to be patient. They don’t bail on their positions easily. They were hugely short at the top in 2005, as well as a few months before the last top. Now they are more short than at any other time.”


Source: Jordan Roy-Byrne, Wall St. Cheat Sheet, January 13, 2010.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.

OverSeas Radio Network

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>




Top 100 Financial Blogs

Recent Posts

Charts & Indexes

Gold Price (US$)

Don Coxe’s Weekly Webcast

Podcast – Dow Jones

One minute - every hour - weekdays
(requires Windows Media Player)
newsflashr network
National Debt Clock

Calendar of Posts

Feed the Bull