Yes, we understand.
Follow the pipe with all the tools until the end of the Asian 'well, you know' then follow the stat rules when Euro wakes up. Simple.
Thursday, November 3, 2011
Tutorial - EUR/USD - FED vs. ECB
Q: Why would the EUR go up while the ECB has just cut interest rates?
A: Because the more overwhelming Forex event is the cancellation of the dissolution of the entire Euro-Zone, i.e. the cancellation of a popular/democratic vote about the Greek situation. Huge cancellation! (for now.) In other words, the people of Greece have no say at the present time.
Q: Why did US Equities rise today?
A: As usual, because the EUR/USD rose today and the supercoms maintain the arbitrage so that the difference between EUR/USD and US Equities is zero (within about 200 ppm or so. That is quite close to zero.) Also, the FED has communicated it will print US$ (printing press) easily and quickly if needed. (A stock traded in US dollars is worth 2x as much if there are 2x more dollars floating around after they have been printed from the FED printing press. Easy... not good, but easy.)
Q: Well in that case, what about the price of a fast-food hamburger?
A: 2x more, sorry. Math works. Sometimes it works against you. We hope your "salary" increases by 2x - ha ha.
Q: What will happen to EUR/USD ratio with all the political events?
A: Unfortunately, it depends on the success of the media on populations. If the EU can keep the Greek citizens deprived of a popular vote (anarchy) then the EUR/USD will go up for now based on that present-circumstance. If there is a popoluar vote, Greece will erase/default on any and all debt and simply say "goodbye" to the creditor banks, etc.
Q: Would someone start a war in the Euro Zone with all this?
A: Not today. That is currently impossible. Instead, all currencies would have less value than today. Simple as that. Printing presses would print money globally.
Q: Is that bad?
A: Only for wealthy folks, poor folks, and everyone in between. Everyone else would be OK... ... ... (?)
A: Because the more overwhelming Forex event is the cancellation of the dissolution of the entire Euro-Zone, i.e. the cancellation of a popular/democratic vote about the Greek situation. Huge cancellation! (for now.) In other words, the people of Greece have no say at the present time.
Q: Why did US Equities rise today?
A: As usual, because the EUR/USD rose today and the supercoms maintain the arbitrage so that the difference between EUR/USD and US Equities is zero (within about 200 ppm or so. That is quite close to zero.) Also, the FED has communicated it will print US$ (printing press) easily and quickly if needed. (A stock traded in US dollars is worth 2x as much if there are 2x more dollars floating around after they have been printed from the FED printing press. Easy... not good, but easy.)
Q: Well in that case, what about the price of a fast-food hamburger?
A: 2x more, sorry. Math works. Sometimes it works against you. We hope your "salary" increases by 2x - ha ha.
Q: What will happen to EUR/USD ratio with all the political events?
A: Unfortunately, it depends on the success of the media on populations. If the EU can keep the Greek citizens deprived of a popular vote (anarchy) then the EUR/USD will go up for now based on that present-circumstance. If there is a popoluar vote, Greece will erase/default on any and all debt and simply say "goodbye" to the creditor banks, etc.
Q: Would someone start a war in the Euro Zone with all this?
A: Not today. That is currently impossible. Instead, all currencies would have less value than today. Simple as that. Printing presses would print money globally.
Q: Is that bad?
A: Only for wealthy folks, poor folks, and everyone in between. Everyone else would be OK... ... ... (?)
Divergence EUR/USD - Technical Traders
There is a slight divergence here. Interest rates down for EUR, lots of turmoil, and so on...
Yes, you folks have made lots of money in the pipe 5x5 for more than one day.
You are still in the down-draft, do not sell out/buy out unless our 2 sigma rule sets have been breached.
Congratulations.
Yes, you folks have made lots of money in the pipe 5x5 for more than one day.
You are still in the down-draft, do not sell out/buy out unless our 2 sigma rule sets have been breached.
Congratulations.
Overnight Forex Trade - GLD is a currency exchange Vehicle...
The EUR/USD is glued to the 50 and 20 day SMA convergence - no surprise here.
Overnight?
No one will have the fortitude to move the ratio from its present state between the 20 and 50 quarter-hour-period SMA's. Until... well, you know.
Same old same old. The supercoms keep arbitrage low. Ho Humm. Yawn.
Have you checked on the price of gold as we recommended?
Overnight?
No one will have the fortitude to move the ratio from its present state between the 20 and 50 quarter-hour-period SMA's. Until... well, you know.
Same old same old. The supercoms keep arbitrage low. Ho Humm. Yawn.
Have you checked on the price of gold as we recommended?
EUR/USD News from the EU on Friday - US Equity Direction Prior to Weekend
The first rule for the Euro-Zone is: DO NOT ALLOW the Euro/US$ to crash on a Friday looking into a 2+ day additional risk-on period for US markets.
Since that EUR/USD ratio will automatically crash, there MUST be something on Thur. or Fri. to help it to "non-crash" just one more time.
Possibilities?
1. The Greek PM has been effectively expunged. The wealthy Greeks now control everything and will never be defeated.
2. Italy has won the EU-Zone $4T lottery and is no longer a default threat.
3. The IMF is granting (from somewhere) $10T to the EU, interest only with no principle repayment date required.
4. Spain is somehow "missing" from the planet Earth. No one can find it.
5. There have been reports from Rome that the second coming of Christ has in fact been witnessed but details will need to follow later.
6. Germany has overwhelmingly decided to have all its citizens pay their entire net worth, philanthropically, to the broader EU immediately.
Whatever it is, it will need to prop up the Euro after an interest rate decline and do it fast. Otherwise... well... Friday could be a bad day.
Since that EUR/USD ratio will automatically crash, there MUST be something on Thur. or Fri. to help it to "non-crash" just one more time.
Possibilities?
1. The Greek PM has been effectively expunged. The wealthy Greeks now control everything and will never be defeated.
2. Italy has won the EU-Zone $4T lottery and is no longer a default threat.
3. The IMF is granting (from somewhere) $10T to the EU, interest only with no principle repayment date required.
4. Spain is somehow "missing" from the planet Earth. No one can find it.
5. There have been reports from Rome that the second coming of Christ has in fact been witnessed but details will need to follow later.
6. Germany has overwhelmingly decided to have all its citizens pay their entire net worth, philanthropically, to the broader EU immediately.
Whatever it is, it will need to prop up the Euro after an interest rate decline and do it fast. Otherwise... well... Friday could be a bad day.
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