Monday, December 16, 2013

Yen Dollar trade: Central banks behind our Backs

Dennis Gartman, is looking for the weak trend to continue. He tells clients in last week’s Gartman Letter he’s looking for a move to 112-115 per dollar, a level not seen since late 2007:

There will be many who argue … with some very real justification … that this trade is crowded. It is. We shall admit that fact, but we also have the Central Bank at our back; we have the trend at our back; we have profits at our back, and those on the other side have none of the above. We’ll take our chances with the trend. It has served us well thus far.