Is The Market Finally Waking Up To Fundamentals?

I see head & shoulders patterns everywhere.

How can a rally be sustained?

Baltic Dry is still heading lower when there should be large demand for shipping due to the Christmas holiday restocking season.

No sign of recovery here.

Does this mean that our initial assessment of the US dollar was correct (see August 2009 post)?

http://whatisthatwhistlingsound.blogspot.com/2009/08/us-dollar-rising.html

A higher dollar usually means:

Lower stock prices.

Falling Crude Oil.

Higher demand for Treasuries.

Low interest rates.

General outlook for the short to medium term is therefore deflationary.