Your Personal Trader - DJIM Journal 09- 1H' 2010

Last week, we said the USD / stock market direction trade is decoupling…“Also, the market has been decoupling from the USD (until late in the day after FOMC statement)”.

This is most important to today’s bullish trade... USD, 5th straight up day, but stock market rallies nicely, TSY 2-10 steepening curve hits all time high. Possible allocation shift into equity.

This is important because the recent trend is done for now. More importantly, a very steep Treasury curve spelling eco' strength and possible favorable banks- brokers earnings is the noise today. This why our JPM GS black sheep were good kids on the block today.(+2% banks)

excellent M&A activity, v.good EPS guidance from tech, broad based action, SOX adding to 340 break (+2%).

good to see consistent positive action ALL day.
still can`t close over 1115-1120 (aargh!)

Despite USD strength and commodity linked stocks mostly weak, the steels trade idea with X is still going strong. X hit another new recent high +6% with AKS …“As far as commodity sector is concerned, we have finally seen some positive action today despite an early higher USD and crude slide. This action was led by the steels after another AKS price raise yesterday, this is a positive for our fave steel X more than other steel names.” Dec 10

So a few bullet points, all good, all long into 2010.