There is a way to hedge cash positions in a portfolio while we wait to see if this is a bull trap or the real deal.
For the stock market, dollar strength and Fed tightening are the same trade.
Also, watch the Treasury yield curve this week. Yes, the curve remains horribly mangled.
Two are household names, and the entire trio could see their results dinged by a greenback that continues to rise against foreign currencies.
Nobody thinks the euro can recover, but in the big picture, a $1.00 euro is probably as unsustainable as the $1.60 euro was in 2008.
With the yen testing ¥137 and stubbornly staying above ¥135 to the U.S. dollar, Japanese exporters will benefit from a currency-exchange boon to the bottom line.
Most do not look at the Yen but it has been the source of great pain in past systemic collapses.
The Japanese currency has broken through the resistance experienced in recent periods of weakness, leaving at its lowest levels against the U.S. dollar since 1998.
As the battle against inflation rages on, we're now up against Friday's jobs report. Here's my take on both.
Here's where I see Devon Energy going and how to play it.