There aren't too many levels yet to fall through... if any.
Maybe we fall directly to our channel bottom. So far, it looks that way.
Uggg (for the Euro we mean.) Very good for "us" so far.
Maintain the math and act accordingly. If it doesn't happen now, it will happen soon... (...er or later!)
Congratulations for beating the insti's. Pretty easy after all!
Wednesday, November 16, 2011
Fitch CYA on US Banks - TV Today - Rating Agency Exposure Again
TV says... "oh, dah, what a surprise... everyone knows banks are succeptible to the Euro/WW economy."
Huh??
The facts:
1. Banks are only immediately succeptible to the Euro/USD currency ratio because the big banks have risked your money and way too many USD in the Euro-Zone criminally while trying to get a higher and more greedy return-rate following the bank-caused 2008 US debacle that required tax-payer bailout.
2. TV and the institutions (insti's) that pay TV have been actively trying to hide the relation with the EUR/USD for months and years.
3. Now the relations are coming to light. Just ahead of the soon-to-come 2nd M...F... GLOBAL-FINANCIAL-COLLAPSE... again!
Huh??
The facts:
1. Banks are only immediately succeptible to the Euro/USD currency ratio because the big banks have risked your money and way too many USD in the Euro-Zone criminally while trying to get a higher and more greedy return-rate following the bank-caused 2008 US debacle that required tax-payer bailout.
2. TV and the institutions (insti's) that pay TV have been actively trying to hide the relation with the EUR/USD for months and years.
3. Now the relations are coming to light. Just ahead of the soon-to-come 2nd M...F... GLOBAL-FINANCIAL-COLLAPSE... again!
Letter to Clients - Huge PROFITS - Revealing this has NO Effect regarding Events
Strong Immediate Trading Opportunity
FINANCIALS (Financial Strategy)
The EUR/USD (Euro vs. the US $) will collapse. The entire Euro-Zone (17 nations) will collapse and rebuild itself nation-by-nation with Germany the first of two-to-three winners. Everybody else, and the Euro, loses. EUR/USD is traded on Forex (the worldwide currency exchange market-place.)
Because the US banks and other institutions have placed nearly all their capital into the Euro-Zone (following the 2008 US institutional collapse,) the EUR and USD (EUR/USD ratio traded on Forex) are also tied to anything that trades in USD, e.g. US Equities like NASDAQ, DJI, SP500, etc., OIL, most commodities, and also GOLD in USD.
Because the USD will rise significantly, all USD-traded entities will fall by closely the same %. The strategy is to act on these facts.
There is only one way to get around these events, i.e. the US FED would need to “print” USD to compensate for the Euro collapse so that the EUR/USD ratio remained manageable; however, that would cause worldwide currency DEFLATION (and of course worldwide price INFLATION.) It would cause the price of GOLD (as an alternative “commodity” to worldwide currencies) to sharply rise in USD value.
TRADING (Trading Tactics)
Immediately, make low-risk/high-reward trades (exactly as taught using derivatives like futures, calls and puts on US-traded equities, e.g. GLD = an ETF (exchange traded fund) for gold mining companies that tracks the price of GOLD, or even more directly GOLD futures… any of the above.
Make a minimum 3:1 trade (5+:1 is better) that GOLD will rise at the same time you make a similar reward/risk trade that US Equities, e.g. SPY (the Standard and Poors index fund) will fall.
You may succeed in both trades, you cannot fail in both trades, and most likely you will succeed at one trade and fail at the other. You don’t care, because your reward/risk is greater than 3:1 at a minimum for each trade. In other words, you cannot lose or even break even, you can only win.
In this way, we take advantage of worldwide financial events to make significant money at an extremely low risk.
TIMING (Trade Execution)
Start immediately prior to any catastrophic event. Fitch has warned of de-rating the credit worthiness of US Banks as of today. The massive slide is already in progress similar to 2008. The EUR/USD is falling in a technical pipe quickly even at the present time.
Trade expiration date must allow enough time for the events to unfold in the minds of traders and especially institutional traders. The more time you buy, the more certain the success; however, the reward/risk ratio and profit will be reduced as well.
The third Friday in Dec. (quadruple quarterly expiration) is a fair choice. Jan2012 expiration is also OK. Anything longer is unnecessary and too expensive.
RISK (Near Term Risk prior to Expiration)
News events from institutions and whole nations trying to prolong the disaster as far as possible are now clearly losing that battle.
Expect a counter-attack on the news front with a possible method to legitimately bolster the Euro without currency manipulation by the ECB (European Central Bank – the Euro version of the FED.)
There is NO chance of this happening, but the risk is that some institution with enough power can force a delay beyond your expiration date.
Dec/Jan should be acceptable expirations in this regard given the more rapid decline of the Euro and the fact that any near term US FED response can officially happen only at the early Dec. 2011 FOMC Meeting.
FINANCIALS (Financial Strategy)
The EUR/USD (Euro vs. the US $) will collapse. The entire Euro-Zone (17 nations) will collapse and rebuild itself nation-by-nation with Germany the first of two-to-three winners. Everybody else, and the Euro, loses. EUR/USD is traded on Forex (the worldwide currency exchange market-place.)
Because the US banks and other institutions have placed nearly all their capital into the Euro-Zone (following the 2008 US institutional collapse,) the EUR and USD (EUR/USD ratio traded on Forex) are also tied to anything that trades in USD, e.g. US Equities like NASDAQ, DJI, SP500, etc., OIL, most commodities, and also GOLD in USD.
Because the USD will rise significantly, all USD-traded entities will fall by closely the same %. The strategy is to act on these facts.
There is only one way to get around these events, i.e. the US FED would need to “print” USD to compensate for the Euro collapse so that the EUR/USD ratio remained manageable; however, that would cause worldwide currency DEFLATION (and of course worldwide price INFLATION.) It would cause the price of GOLD (as an alternative “commodity” to worldwide currencies) to sharply rise in USD value.
TRADING (Trading Tactics)
Immediately, make low-risk/high-reward trades (exactly as taught using derivatives like futures, calls and puts on US-traded equities, e.g. GLD = an ETF (exchange traded fund) for gold mining companies that tracks the price of GOLD, or even more directly GOLD futures… any of the above.
Make a minimum 3:1 trade (5+:1 is better) that GOLD will rise at the same time you make a similar reward/risk trade that US Equities, e.g. SPY (the Standard and Poors index fund) will fall.
You may succeed in both trades, you cannot fail in both trades, and most likely you will succeed at one trade and fail at the other. You don’t care, because your reward/risk is greater than 3:1 at a minimum for each trade. In other words, you cannot lose or even break even, you can only win.
In this way, we take advantage of worldwide financial events to make significant money at an extremely low risk.
TIMING (Trade Execution)
Start immediately prior to any catastrophic event. Fitch has warned of de-rating the credit worthiness of US Banks as of today. The massive slide is already in progress similar to 2008. The EUR/USD is falling in a technical pipe quickly even at the present time.
Trade expiration date must allow enough time for the events to unfold in the minds of traders and especially institutional traders. The more time you buy, the more certain the success; however, the reward/risk ratio and profit will be reduced as well.
The third Friday in Dec. (quadruple quarterly expiration) is a fair choice. Jan2012 expiration is also OK. Anything longer is unnecessary and too expensive.
RISK (Near Term Risk prior to Expiration)
News events from institutions and whole nations trying to prolong the disaster as far as possible are now clearly losing that battle.
Expect a counter-attack on the news front with a possible method to legitimately bolster the Euro without currency manipulation by the ECB (European Central Bank – the Euro version of the FED.)
There is NO chance of this happening, but the risk is that some institution with enough power can force a delay beyond your expiration date.
Dec/Jan should be acceptable expirations in this regard given the more rapid decline of the Euro and the fact that any near term US FED response can officially happen only at the early Dec. 2011 FOMC Meeting.
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