15 June Would a Stronger Dollar stop Oil rise ?

Unspoken, but it is understood that Carry Trade is here to return big time, so as to support the Equities.

the De-Leveraging of the Financial Markets has screeched to a stop, we should see a real bear rally in coming weeks.

That also means that the Carry Traders would continue to pump monies into Commodities, Oil, etc.

With all the calls in the congress to limit margin trading in oil, one doubt if US is any more a Free Market.

Just as when Enron collapse triggered the Sarbanes Oxley Act which make US markets less competitive. Brokers, funds would in future move some of their trading activities abroad into Asia. E.g. Meryll Lynch, Goldman Sachs have moved major Back Office operations to Singapore.

Core Inflation is actually inline with expectation in US, compared to other Asian countries.

While politicians is screaming Strong USD, while Oil keeps rising. When Euro is at 1.6000, Oil was just at 120, now Oil is 135, while Euro has dropped to 1.5300.

If Euro drops to 1.4500, Oil would still hovers at 130, imagine Petrol prices would sky rocket in Europe, and there would be more strikes, riots, etc.

US problems has started to migrate to Europe, and then the world. A stronger USD, coupled with rocketing Inflation in India, Vietnam are all recipes for a Asia Financial Crisis.

It is interesting that while US is trying to get on its feet, it is dragging others into the water. That falls into the gameplan of the Dark Forces. And that is how a global Kondratieff Winter comes about.

the answer would be out next week.

And Bernanke would once again be shown as a double talker, when he does not hike despite saying so.

The trust in the Greenback would once again be diminshed.

China is now at a dilemma if it should diversify its USD holdings, when the Democrats would likely win the next Presidency.

Then Pelosi would lose no time in seizing the China treasuries, and establish stronger ties with Tibet Dalai Lama.

Nonetheless, it is a USD rally weeks ahead till 25 June.
Short Euro 1.5380
Stoploss 1.5400
Target 1.5260