W.C. Fields once quipped, “If you can’t dazzle them with brilliance, baffle them with bullsh!t.” Too many journalists are falling for the bullsh!t that European officials are using to try to fool investors. The amount of uncritical, credulous reporting about the Eurozone is astonishing. Most of the articles in the Wall Street Journal or on the Associated Press or Bloomberg or Reuters read as if they’re rewritten press releases from the EC or the ECB. They’re totally disconnected from reality.
What the media fails to grasp is the nature of the problem. It’s a problem of solvency, not a problem of liquidity. In other words, the value of the liabilities of these banks and countries exceeds the value of their assets. Many journalists don’t seem to understand the difference between a gift or grant of money and a loan. With a grant or a gift, the money doesn’t have to be paid back. With a loan, the money has to be paid back.
Making loans to entities that are insolvent doesn’t make them solvent and therefore doesn’t solve the problem. These bailout loans are nothing more than a shell game, with new loans made to repay old loans. The details of the Spanish bailout haven’t been worked out yet, but what Spain is being offered is a loan from one of Europe’s bailout funds. The obvious question is how will Spain ever pay the money back?
Trade smart and good luck
if you borrow something that does not exist - do you have to pay it back?
money used to represent value - not sure what it represents nowadays
This is my target, I've big position long from 1,23, and continues stay long up to 1,28 area, surfing the wave up and down with little positions. From 1,28 come back short! Good luck
Today in the beginning of the European session the Euro moved up to the 100 % fib extension (1-2 at 3) and daily R1 at 1.2548. The Euro struggled with this resistance level although EUR/USD moved up close to the weekly pivot point (1:35 p.m. GMT, 4). However, EUR/USD failed to close above this resistance zone (1.2548) on the hourly basis so that market moved lower (1:35 p.m.) to find some support at the rising hourly 10 SMA (red line-5). From there, the Euro strongly moved up above the prior resistance zone at 1.2548 (second test) and market was able to close above the weekly pivot on the hourly (second test) and 4-hourly basis (candle close at 4 p.m.). The hourly candle (3-4 p.m.) approximately closed at (respected) the 61.80 % retracement and daily R2, which in the following got broken with the beginning of the next hourly candle (4-5 p.m.). In the following, the Euro moved up to the 100 % fib extension at 1.2603 (6).
On the 5 min chart we see that market very often reacted at the 61.80 % fib retracement marked with the 0 on the 5 min chart and market also often reacted at the 100 % fib extension market with the 1 on the 5 min chart (important fibonacci levels). At the start of the London trading session at 9 a.m. the Euro made a abc retracement before market moved up to the 100 % fib extension at 1.2554. In the following market formed a typical 3-wave consolidation pattern/ butterfly (circled). After the termination of the consolidation the Euro reached the typical butterfly target (127 % fib extension-1-0 at 0) before EUR/USD reversed and took out the low of the prior consolidation (1.2526), which is also typical for a butterfly pattern. The Euro found support at the 10 SMA on the hourly Chart (2-3 p.m.) and formed a kind of ending diagonal on the 5 min chart (ED). In the following, the Euro strongly moved up to the 100 % fib extension, where market consolidated.
London session review and outlook June 13- 2012
Review of markets covered in today's edition of Bulls vs. Bears: EUR/USD, GBP/USD, AUD/USD, FTSE100, S&P500, Gold, Brent Crude and WTI.
Regards
Alejandro Zambrano
Currency Strategist | DailyFX Forum (London) azambrano@fxcm.com
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USD 4 hrs is showing 2 distinct patters.. A bull flag indicating new highs coming and secondly a descending triangle indicating a break will start once the price heads lower to the base of the triangle...Hence with double bottoms forming as it may seem, the weight is getting tilted towards the Bull Flag.. In this case we at the median of the Bull Flag.......
I prefer a bull flag scenario...
GL....
Patience is virtue. The sooner we learn this all, sooner we can start walking to the bank. Good Luck to all of us
The trick is to wait the price meet ur limits, instead of one jumping in.. however scalps is a totally different scenario and is not everyone's cup of tea
Disclaimer: I'm not at all suggesting trades when by either posting the graphs, or my entries. You can view it, but in the end you have to use your own logic and approach, as there is no certainty about this uncertain market...
USD 4 hrs is showing 2 distinct patters.. A bull flag indicating new highs coming and secondly a descending triangle indicating a break will start once the price heads lower to the base of the triangle...Hence with double bottoms forming as it may seem, the weight is getting tilted towards the Bull Flag.. In this case we at the median of the Bull Flag.......
I prefer a bull flag scenario...
GL....
1 can see a v. bearish H&S too
good analysis is easy
making money from your analysis is a whole new ball game
for it to be a true H&S it must be that the first shoulder should rise on heavy volume, but the second shoulder should have "decidedly less volume" than either the head or the first shoulder. .. the whole formation should come after an "extensive trend". ... Many purported head & shoulders patterns fail these two tests. The weak volume indicates exhaustion of trend and a coming rotation to the other direction
The strong 10-year offering is inspiring buying in the broader Treasury market, with prices at session highs. The 10-year is up 11/32, yielding 1.622%, while 30-year notes climb 23/32 to yield 2.737%. That ahead of Thursday's $13B sale of 30s. If sold at the current yield, it'd be the lowest ever, as was the case with today's 10-year sale. New auction records may not be big news these days, but the long bond is a somewhat different animal, locking in buyers for a much-longer period. The current record, set in December, saw bonds sold then carry a 2.925% yield.
a period of sideways to lower trading is well within reason at this point..LT outlook unchanged
EU approved new rules for fiscal oversight & budget plans
New rules, known as "Two Pack"- A "growth instrument" mobilizes 1% EU GDP 10-yr
To be used for infrastructure investment - B- European Debt Redemption Fund ...
Aggregates all EZ members' debt over 60% of GDP for common debt issuance.
Individual states now have to ratify
for it to be a true H&S it must be that the first shoulder should rise on heavy volume, but the second shoulder should have "decidedly less volume" than either the head or the first shoulder. .. the whole formation should come after an "extensive trend". ... Many purported head & shoulders patterns fail these two tests. The weak volume indicates exhaustion of trend and a coming rotation to the other direction
well if it is a H&S on dollar index and neck breaks - should send euro to 12800+
good analysis is easy
making money from your analysis is a whole new ball game
USD 4 hrs is showing 2 distinct patters.. A bull flag indicating new highs coming and secondly a descending triangle indicating a break will start once the price heads lower to the base of the triangle...Hence with double bottoms forming as it may seem, the weight is getting tilted towards the Bull Flag.. In this case we at the median of the Bull Flag.......
Another reason Im bullish until TL breaks. Daily candle has me targeting 1.2640. Attachment 132853
My target of 1.2640 was almost touched this morning. Stops are at +10 as always. Going to take half position at 1.2640 and let it ride to the 1.27295 area or top of the daily BB, which ever comes first.
I know this prolly isn't the forum to ask this, but its simple enough.....how do you get the us dollar chart and spx charts?...They aren't under the symbols tab and I can't add them.
thanks ahead of time.....
I know this prolly isn't the forum to ask this, but its simple enough.....how do you get the us dollar chart and spx charts?...They aren't under the symbols tab and I can't add them.
thanks ahead of time.....
for an MT4 platform you can use admiral markets, request a demo account
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Originally Posted by CodyB
W.C. Fields once quipped, “If you can’t dazzle them with brilliance, baffle them with bullsh!t.” Too many journalists are falling for the bullsh!t that European officials are using to try to fool investors. The amount of uncritical, credulous reporting about the Eurozone is astonishing. Most of the articles in the Wall Street Journal or on the Associated Press or Bloomberg or Reuters read as if they’re rewritten press releases from the EC or the ECB. They’re totally disconnected from reality.
