The currency markets are less suseptible to hype and market touts than stocks...
Right now, hype rules in the stock market...no one wants to see these gains, however bogus, disappear...
I expect stocks to continue their rally to at least 13,000 on the DOW perhaps before the end of January...powered by nothing more than FED liquidity, hype and momentum.
But the dollar should decline for the entire month...and gold will rally. Any rally in oil will be beaten down by the stock speculators...but that job will prove impossible longer term as macroeconomic and geopoltical events unfold...and oil should close January at about $65...
Essentially the "job" of Wall Street in 2007 will be to deny the laws of macroeconomics. UNTIL it becomes impossible to sustain the gains...then, a drop will kick, probably around May 1st, to take the retail suckers in for their annual fleesing...
Housing will continue down... And job "creation" will be extremely weak but any positive number will be hyped by Washington no matter how bogus it might be. The CEOs will say what needs to be said to keep the MoMo Rally going...no news is bad news to the Cult of the CEO.
The enemy of the market is "events;" anything that focuses attention on reality is bad for Wall Street...
As long as the current fluff news cycle is intact...stocks will rise...
