Core Values

FX Update - Dollar Bearish Trend - Odds at 59%

After reviewing data for the Aussie dollar, my view on the US dollar is still bearish. The UDN is sitting right at my entry point, and I'll start building out of the money strangle option spreads, along with an outright purchase of the UDN (Powershares US Dollar Bear ETF)

Economic Update - Odds of continued expansion set at 62%

I just updated my Economic model and I'm still setting the positive outlook at 62%

Interesting highlights - data for the end of Aprill 2011

• Generally, interest rate trends remain down
• The 5 and 10 Year T Bond yield is creeping upward
• Spreads of short term paper such as 3 month LIBOR and Euro deposits against the 3 month T Bill are widening
• Personal Income from 2011 Q1 continues to improve