The Dollar revisited

Good morning,

The Dollar is in freefall today vs. the Yen as we continue to move towards financial armageddon. If you've followed my writings you know that I have been extremely skeptical about the stock market rally that has occurred over the last year. But you have to understand that the market will always hurt the greatest number of participants and that time, in my humble opinion, is imminent. If you have any doubt just look at the housing debacle that we're currently experiencing. I moved back to Florida in January of 2005 just in time to witness the hysteria that was taking place in the Real Estate markets, not only in South Florida but in most areas of the country. I worked alongside people that were heavily involved in the industry and they believed, with all their hearts, that they had found the "Holy Grail" and nothing could keep prices from going up, up and away! You had people getting mortgages that didn't have a nickel to rub against a dime and speculators that never even considered the possibility that real estate prices COULD actually go down. "Flipping" had a whole new meaning and you must have been a recluse if you weren't doing it too. Situations like this can have only one result. A meltdown has occurred due to easy credit and historically low interest rates. Don't even think about a bottom in this market any time soon. I believe the worst is yet to come and it WILL eventually spread to other areas of our economy which will put us into a deep and prolonged recession. When the Presidential election rolls around we may be hard pressed to find a candidate willing to take over the mess that they will have to inherit from one George W. Bush. This man has been "bush league" from day one. He's taken incompetence to a whole new level which we haven't seen since the days of Jimmy Carter. Please forgive me for going off on a tangent but we, as citizens, must put aside partisanship before we lose EVERYTHING that we have worked for in this country.

That's it for now. DOW futures are down 170 but don't turn your back on this market if you're short like me.

Regards,

Dale F. Doelling
President and Chief Market Technician
Trends In Commodities