There is not much rocket science involved in my views/charting/working, it’s all about reading and attacking the market at correct time, as the European policy makers and global negotiator have nothing in real sense to offer.
They are simply looking for ways to make adjusting book entries. It is the big players that take advantage of their size and since they have liquidity they can hit the market through volume.
This is one reason that we often hear that Asian or Middle Eastern or European buyers or sellers are in the market. Who are they Central Banks or Sovereign Wealth Funds (SWF)? When they enter the market charts don’t work. They enter market with a target and vanish and later poor jobber’s scratches their heads wondering what went wrong. The real catch is to follow their footmarks. How to follow them? All that I know is that they just don’t go against the trend unless they are caught wrong footed. Then only they try to do new things that confuses the market.
E.g., there is lot of talk IMF investment. Where is IMF money? IMF does not have money of its own, so developing nations will pool the money. But developing nations are themselves laden with huge debt, where will they get the money from? Simple ! By Printing Money and flooding the market with cash. Then they will soon start talking of market stability and Corporations getting back in profit. Don’t get confused its all window dressing trough book entry.
This is all fake, temporary and unending solution. Genuine way of correcting the issues/problems is only by generating revenue that can be done through heavy taxation and by having surplus funds. No political party can risk election by taxing its people and I challenge that there is no other way out and this may not be over in a century. So the policy makers will keep on passing adjusting entries and the economist will keep fooling us with his economic theories.
Don’t worry about the European policy makers as they have nothing solid to offer. They may come up with some sort of vague understanding. Keep selling Euro by picking the top. I will keep you posted about through regular update of my blog.
EURO @ 1.3275= Requires clearing 1.3340 on break of 1.3298 for a move to 1.3390, which may not be easy to crack. Sell Euro around 1.3280 range for 180 points drop. Volatility to persist.
GBP @ 1.5845 = Only break of 1.5890 may push Cable to 1.5935, which does not look a possibility. Pick to sell GBP. though 1.5890 may not be easy to crack.
YEN @ 79.70 = Saw a perfect bounce back now requires to clear 79.70 convincingly for 80.20-30. Buy Yen at those levels considered safe. With stops 80.60
GOLD @ $ 1735 = Needs to clear $ 1737 for $ 1743. Suspect this rally will fizzle out for $ 1725