Maurice Gitau says "$ sold to the dogs...!"

Well the US NFP results were better than expected - 539K jobs lost in April against estimated 600K. Also unemployment rate came in at 8.9% as estimated. Though poor results, but it shows a slow down in job losses meaning the financial crisis is slowing down and may turn neutral by year end. As I had stated below stock markets have rallied on this news – Dow, Nasdaq and S&P 500 all up. Oil is also marginally up as it’s overbought since yesterday and a pullback has to happen fast before it can trade higher. Other commodities are also up and at these levels a pull back on all markets (equities and commodities) is required before another big rally happens. Traditionally May is a selling month in the US, but with the current conditions, I doubt this will happen. As usual, with equities and commodities rallying, the $ does take a hard beating. All major currencies especially Asian and other commodity based like Canadian $ have gained big figures against the $. This is why I was stated yesterday, I’d prefer selling the commodity currencies at these high levels, but a big risk was also in the offing if the $ weakened. So I will have to wait till next week to time the sell entry during the pull back. And the $ beating has been bad and nasty with the $ oversold beyond lows last since on Dec 19 2008, Jan 5 2009 and Mar 19 2009! After markets close today, the charts will indicate the $ is bearish (a sell signal) and it will be sold off even next week whenever it tries a recovery rally. As it stands, in the short term, we are back to expensive Euro, Pound, and Yen (really bad for importers – especially electronics, cars etc and Asian exporters since goods become expensive to sellL). I expect the Ksh to rally against the $ next week as the sell off continues. Your country’s currency should also reflect the same and your stocks should be greener J