Dovish Fed Creams Dollar

After the market had "baked-in" a small taper and a likely Larry Summers Fed, surprise surprise!  The clock has been turned back. Ten-year bond rates had gotten ahead of themselves, resulting in too much dollar strength.  Emerging markets were wilting at the prospect of tightening monetary conditions.

The equity market bull is back for the short term.  I took positions today in Google and Priceline.  I expect to be short the US$ soon.  

Druckenmiller Not Short AUD/USD Any More--Waits for new Fed Chairman

I am no longer short AUD/USD.

Action Determines Character

With EPD continuing its "high pole warning" signal, I closed my position and retreated to the sidelines waiting character revealing actions in the Middle East.

I have no positions in the stock market for now.  I remain short the AUD/USD.  I attribute this week's rally in the OZ to the market pricing-in the change of government after tomorrow's election.  The more conservative government may be good for the Australian $, but time will tell.