Northern, WI  12/12/2012 (BasicsMedia)  —  Solving the fiscal cliff must mean that the value of our currency will decline.  It has too..because when Uncle Sam turns on the printing press the dollar I have in my pocket is worth less.  Period.  So if I can simplify the explanation (because there are zillions of ETF’s) I expect the dollar to go down and stocks to go up in to year end, and sans opening a cash currency account to get short the dollar, I found a series of ETF’s.  Some of these ETF’s are levered it’s not for the shy.

  I also suggest you paper trade anything before you try it with your own money (I do not give trading advice here or anywhere, this is simply my observation) just to try out any ideas you have because taking a position in the currency market is like betting the line on NFL’s a total crap-shoot. 

There are a variety of listed stocks to trade and again I caution you…you are swimming alone once you start trading 3x ETF” can go off in your hand and blow you up!!  So walk carefully when trading  something called 3X Short US$Dollar (NASDAQ:UDNT), or 3XLong US$Dollar (NASDAQ:UUPT), it’s better to get a feel for the Long US$Dollar (NASDAQ:UUT) and there is also a short US$ also which seems silly.  I would also add Gold (NYSE:GLD) and the 30 Year Treasury Bond to your watch list 30 Year (NYSE:TLT).

Back to my observation: 

 1.) The Santa Rally is on !! Stocks should run higher squeezing the short sellers to the delight of long only PM’s who will be adding to the fray by participating in normal year end mark up, I actually had a fund manager put on a pair of Magic Mickey Mouse hands every year end mark -up.  It was so blatant in some smaller stocks I had to close my eyes, but markets were on a huge roll during the late 90’s Internet Bubble and it seemed anything was possible.

2.) Once Barack Obama and Johnny B are done playing politics with the economy they will start the printing presses (they started yesterday) and the value of the US Currency against all currencies is suspect.  The dollar doesn’t move much, but when it changes direction it slides for a long period, and there will be a day – once we sort out the fiscal cliff bailout – where  the dollar will be worth much,much, much less than it is today.

I call this the New TARP….

Disclaimer:  We have no position in any stock mentioned here, this is not to be taken as trading advice in any  way, we are journalists observing the markets.

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