A Look at the Currencies, Stock Indicators

Our overbought/oversold stock market indicators are going neutral after being slightly bearish for a few weeks. Depending on market action, they are looking to go long in a day -- or a few days. Our long-term indicators remain bullish, while our short-term indicators are getting a headache from the flippant stock market. Net-net, as you can tell, we have been slightly bullish, riding the general trend upwards in the equity markets.

Today, the US dollar is taking a breather from its recent steady decline. Most foreign currencies have been gaining ground relative to the US dollar. In particular, high-yielding currencies like the Canadian $ and Australian $ have made big gains. Many markets are now discounting the risk in the general global economy. Only time will tell how things shake out -- but for now, sell the US dollar on dips (and buy all foreign currencies on dips).