Russians Make Good on their Promise

As I mentioned in a previous article, Russia began selling oil, oil products and gold on their stock market Thursday. There's nothing unusual about that except the sales are in Rubles, not the US Dollar (USD). While it won't turn the world upside down overnight, it adds to the significant shift away from the USD happening all around the world. Simply put, this reduces the demand for, and therefore the value of the Dollar.

Boing
The Dollar has had a bit of a bounce in the last few weeks after a serious dive that was probably overdone. The bounce back is typical of overdone moves in all the markets and I suspect the downward trend will resume once currency traders get their heads wrapped around the flurry of events we have seen in the last month. Every industry has its own lingo and finance is no exception. The snap back at the end of a big down move is called a "dead cat bounce" because even a dead cat will bounce if thrown down onto the pavement hard enough. Don't be fooled by these bounces, there's more pain ahead. Looking at a chart, these bounces look like a fish hook, and they catch a lot of unwise buyers who jump in too soon.

Late to the Party
When it comes to investing or trading in the markets, I believe in taking a queue from the hip and fashionable. Arrive late to the party and leave early. Leave the risky discomfort of showing up before anything is really happening and the direction of the party can be ascertained. If you pull up in front of the house and there a row of rusty beaters along the curb, keep moving. Leave before the fights and puking starts, and avoid the ugly scene and last minute lurch. Get in when things are going well, make your bets and get out before things start falling apart. Easier said than done, I know.