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Market Bugle - by Mike Landfair

When Ineptitude Reigns

March 26th 2009 05:34


Imagine, our Treasury Secretary Geithner saying he's open to the idea that the Chinese floated about needing a new currency. The fools are running the insane asylum. After years of our government officials talking about our desire for a strong dollar, it has come to this:

Geithner, at the Council on Foreign Relations, said the U.S. is "open" to a headline-grabbing proposal by the governor of the China's central bank, which was widely reported as being a call for a new global currency to replace the dollar, but which Geithner described as more modest and "evolutionary."


THe dollar immediately took a hit, but recovered. I just took a look at the chart of the USD and I'm concerned. This looks to me like a classic continuation pattern. A big drop, in this case about seven points, and a modest rally. What I would expect is a falling out through the bottom and a drop somewhere near the last major low.
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