Wednesday, November 9, 2011

Technicals - EUR/USD What Now?

The ratio quickly bounced off the top of our channel and is now dead center middle in the pipe. But, the pipe is a fast downward pipe.

We think the present pipe is 5x5 but will be difficult to sustain because of its slope.

We don't know(!) A slight tendancy has appeared for an upward motion within the pipe. Be careful. We are not placing orders we do not intend to watch continuously for now.

GAAP vs. NON-GAAP Earnings? Tutorial - Cisco! CNBC

Q: What is GAAP?

A: GAAP = Generally Accepted Accounting Principles

Q: What is Non-GAAP?

A: Non-GAAP is a confusing euphamism for "unacceptable/illegal accounting principles."

Q: Why is Non-GAAP reported?

A: Normally, when a corp. has lost lots of money (mostly due to the cost of paying employees through the company's own common stock) - then the corp. needs to "understate" its true cost situation so people think the corp. is "better" than it really is.

Q: Is the diluted-stock action illegal?

A: No. Stock is a form of compensation. When you pay your people relatively little in terms of US$, you need to compensate them with stock privileges.

Q: Does that make a difference in earnings for the corporation?

A: YES - Non-GAAP means you are not reporting your true expenses; therefore, your perceived earnings are much higher than they really are.

Q: Do people get confused and buy stock when they shouldn't in that case?

A: Definitely. TV networks even work with the corps to fool investors. Yes, it should be illegal, but it's not(!) ha ha...! Be advised!!

China Trade for EUR/"RMB" - Forex for Asia

Many wealthy Chinese folks will wake up in a few hours and wonder why their net worth has suddenly dropped significantly again. (Obviously, our clients are not part of that particular net-worth-dropping subset.)

As with anyone, most folks will be thinking about when enough is "enough" and maybe just sell out asap before the loss of even more RMB that have been invested in the failing Euro-Zone.

We can now start to apply the Fibonacci sequence/ratios to the grand worldwide sell-out vs. retracement for the Euro-Zone. Lots of money to be made from the Europeans if you know how to do it.

PS - "RMB" and USD - Since any and all money you have placed into a bank, a mutual fund, a 401K, an IRA, any hedge fund, a money market account, provided to any person or financial entity, etc. is 100% at-risk in this trade without your knowledge, you may want to monitor the Euro-Zone collapse with heightened attention.