Tim Bourquin interviews Kathy Lien, who talks about why she is still bullish on the euro.

So many of us will spend a great deal of time studying the perfect time to buy, yet so little time on when to sell.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for December 13.

A morning announcement by the US Federal Reserve and other major central banks forced large corrections across risk-sensitive asset classes, as the monetary policy authorities outlined plans to ease current credit market crises.

The financial marketplace is a lot less forgiving than it was a couple years ago. Now, marginal homeowners are being squeezed by higher prices and higher mortgage payments. And marginal investors –- even those with billions to throw around –- are being squeezed by falling asset prices.

A strong November retail sales report could ignite a bid for the dollar and the Dow on Thursday, though it may be brief as traders grapple with the implications of the FOMC’s 25bp cut and policy statement that essentially left all options open going forward.

Tomorrow’s paper in America will tell us what the Fed is up to. But whatever it does, the answer to the ‘what happens next’ question depends on where you are; if you are at the beginning or the middle of a credit expansion, you get one answer. If you are at the end, you get a much different one

The US import price index is expected to have surged 11.0 percent from a year earlier – the sharpest rise in over twenty years. And Fed fund futures continue to price in multiple rate cuts next year. Won’t more accommodative monetary policy only fan price pressures?

If there is one thing you can count on it is that developers, bankers and farmers will over-do it. They all go bust every 10 years or so. What is hurting the banking industry now is subprime lending. But don’t worry. We live in an age of Zoo Capitalism, and the keepers are supposed to make sure the animals don’t get hurt.

Given all of the dovish potential surrounding the upcoming FOMC meeting, there may be more gains in store for Treasuries and US equities, while additional weakness may await the US dollar.