Swiss franc oversold and overbearish vs. USD

The franc has taken a beating against the dollar, since it pretty much behaves like a slightly harder euro. Here is an hourly chart (click to enlarge):

TD Ameritrade

Sentiment readings have been super bearish here for a couple of weeks now, so we’re set for a reversal. At the least, going long the franc is not a bad way to hedge a portfolio that is long-term short risk (stocks, junk bonds, commodities).

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One thought on “Swiss franc oversold and overbearish vs. USD

  1. Mike, this is the May 2010 Eclectica Letter. Although it’s still discussing on the China topic, Hendry presented some perspectives I have not seen elsewhere, e.g. comparing China to Japan 1920s (most are comparing it to Japan 1980s), their FX reserves as similar to US subprime mortgage, etc.

    http://www.zerohedge.com/article/deep-thoughts-hugh-hendry-eclectica-fund-may-2010-manager-commentary

    Will be nice for one of your future articles. Hendry is one of my favorite reads.

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