What's Going On
It's the one of the last trading days of 2008. Euro/GBP/U.S Dollar action, in the last 2 sessions;
India's Rupee- 24 hour change: 100% Session before
South Korean Won: 75% Last Session
It was obvious to see that the U.S. Dollar was in a shooting gallery. But it was good until the Euro and GBP are having a race to the bottom.
Mr. Trichet should get some bias. This is a hint.
Mr Paulson was on China a day or so ago. I want you to look at this photo.
Hand gestures in foreign countries can be offensive, as I have experienced.
I hope he didn't offend the Chinese. Read this article carefully for clues for
China's future actions.
The story is here;
Also, Warren Buffet Wins a 224 Million dollar bet with The State of Florida.
Buffet has a sharper pencil than AIG. You won't see this money in the stock market.
There is another story that disappeared but is true. Walmart is in talks with Russia to expand into their country. A warning to all Russian traders;
From personal experience, the bread is stale, the meat is tough, and the products won't last 3 months. Buy on from your old sources. I quit Walmart 3 years ago.
Have a great New Year, and
Recent price action @ 8:15 GMT on the GBP was a 7 day auction of U.S. Dollars.
Euro action was partly by Trichet speaking @ 7:00 GMT and troubles in Europe.
The big move this morning on the GBP was Bank intervention by the BOE plus
Bank intervention by Indian Rupee. Hope you were watching. I think that all the pips on the GBP are in Argentina, because my chair wants to slide South. LOL.
Friday is going to be a very busy day. Watch the Volumes in trading, very important for the large moves as were displayed this AM.
Today is one of those times where you see EURUSD move 300+ pips downand GBPUSD is moving up"
What to do in this case and, how to take advantage of this setup ??
Sell/Buy or Buy/Sell ... and exit at the combined profit of 20-25 pips , could be more but this is what I call a safe trade
Explanations : by selling EURUSD " we buy the USD " and buy Buying the GBPUSD " we sell the USD " in away we hedge the USD , but since EUR and GBP and correlated pairs then one of them have to correct its position and in such a trade we can make money regardless of the direction that any of those pairs will take after the trade
first 20 pips are booked waiting for the next trades
The site is here:
Evans says Fed needs to mimic below-zero rates | Reuters
"But that's not possible"? BULL Every country is printing money now. Everything is Possible. The problem with these people is they do not know what these items are.
FED could set rates to -3% (paying you to take money) and still we would not see any solution.
Let me explain. Why somebody wants to borrow money if:
You buy a house with a loan and probably your house value will be 20% down in next moths.
You buy shares/stocks using a loan just to see shares/stocks are 50% down just in 2008.
You want to build a factory with a loan where demand is contracting and you are unsure where the recession will be over.
Do you take a loan to?... if on any situation future values of almost anything are completely immersed on a bear market.
Would you take the risk?
Besides we all know that Japan have applied the zero rates policy on more that 15 years without luck. Why this should work on US?
That is the reason I said "Bull". As I have said before, the Fed is operating under the guise of attrition. They will not let the free market work. As of this period of time, our young people don't think of anything but I-Pod's and gadgets, Hollywood and Porn on their computer. As you know, I am self employed as you are. I have started my business in the U.S. 4 times in my life, Without the use of credit. I'll bet you didn't start trading with a credit card. Starting businesses with credit won't last 5 years because the cash flow isn't there to support the credit payments. Here's another "Bull". Start a Forex Account with $100.00 with your credit card.????
BTW, in one of the articles I read, Paulson stated that, "The Fed should be separate from the Congress". I believe that his brain is surrounded by battery acid other than cerebrospinal fluid. Nothing will change.
What's going on?
I hope that trader that missed the Big move last night, was in there tonite.
Minnesota declares "Funny Man", Al Franken as Senator. They did this by,
Oh, I found this box of votes in the trunk of my car, or I found some votes in the garbage. Another of Soros people. What corruption.
Ex CEO of E-Bay is going to run for California Governor. ?????????????
Gasoline up $.07 today. The problem, gas is too cheap. The Feds want to increase gas taxes, and Oregon wants to tax by mileage driven: How? GPS in the car. Crude oil futures for March 09, are above $50.00 already. Their not repairing roads, anyway. I have a clipping that I put on my computer about gas crisis, 20 years ago. I may post it one day. Trader's will trade it up. Time.
In my previous post, I had both the GBP & Euro plotted with a 240 Hour channel, a descending wedge. My words were, " The price is in the middle of the channel, and at the upper trend line,within 10 pips, trade and drive it down to previous session support". You can see what happened, but I omitted the comment because I didn't think anybody would see it, but I did say, "A Hint".
At 6:00 GMT, I got this alert:
The weekend comments from ECB VP Papademos (ECB to "act appropriately" in slowdown) is the second signal in 7 days that ECB members are open to rate cuts in contrast to comments from ECB President Trichet. Opportunistic traders have speculated that the overnight yield advantage of the euro alone could support EURUSD. This view is falling out of favor very quickly, as speculators see that the EUR rally has stalled and ECB members are sounding dovish. Again, this is not a story of USD strength, it is one of the ECB being late at cutting rates as aggressively as five of the six largest central banks have done. In this week of many economic releases - even from the EU - US weakness in the labor sector is not likely to boost EURO much. Indeed, the FOMC minutes will very likely speak of a bleak US economy condition. Conversely, the euro will be under pressure on Monday because of the Papademo comments, something that could point to a very bad week for the euro.
Looks like it still is. Not that I am a genius, it is because I have sat with and been around some very prominent people of this world, and I know how they think. They have the same stupid attitudes of some people I know.
When I was 20, an old timer told me how this country works. It has taken me another 20 to believe it. I surely won't see the end of this debacle because of the Trillions being thrown around. It's only rich people playing with the "Not So Fortunate". That's why the importance of the government to finance education: To keep America, "Dumbed Down". They are succeeding.
The chart pattern I previously discussed is posted on Linuxser's website, about 1 year ago.
I've said too much already.
In the words of Carolyn Kennedy, candidate for New York Senator;
Well, um, I, like, you know, the coming news on the GBP is Baked In, that's all".
What to do in this case and, how to take advantage of this setup ??
It's amazing to me that the GBP will run back and forth the channel and take the opposite direction of the Euro. Still, I think the GBP is one of the most powerful currencies in the world. Maybe the recent action is because the Banks are really lending? The blogs in the U.K. don't reflect this, but something is happening. It's obvious that at times you can see intervention, and you can see when the intervention stops.
P.S. Didn't see your post until this AM.
Also,U.S. Gov. is now taxing livestock. Cow farts. About $175.00 per cow and $75.00 per pig. Al Gore is hibernating right now. We'll see him in the spring, probably around groundhog day.
Maybe Linuxser can answer the GBP action.
NFP on the 2nd Friday this month. Due January 9th, 2009
Schedule of Selected Releases for January 2009
US opens new embassy in Baghdad
Usually EURUSD and GBPUSD move together, there is a lot correlation setup about the best entry on the triangle of EURUSD, USDCHF and GBPUSD ... in any setup traders are looking to hedge the USD by hedge USD I mean sell and buy USD ... how to do that I will give an example
if you buy EURUSD that means you bought EUR and sold USD , now
if you sold GBPUSD that means you sold GBP and bought USD
and since EUR and GBP are highly correlated pairs " they move along with each other " the buying EURUSD and selling GBPUSD means you have hedged the USD ... thats in breif
Now when the GBPUSD move up and the EURUSD moves down thats not normal and this move is due to correction ... I would like to normally take the direciton of the GBP ... and for that you can use the GBPCHF or simply put a line on the chart and come back to it in 15 min then take the direction of the move between the two lines " this will be the recent trend"
So for example we buy the GBPUSD and sell the EURUSD ... if the GBPUSD change its move and went down causing a loss in GBPUSD we know that the EURUSD will follow and move down so you can't lose on both pairs, and if you do, you will have draw down for a while then the trade will turn in profit.
Thats regarding the move on EUR and GBP.
Now I would like to hear your opinion on the recent investment by the US goverment 700-million dollar embassy shouldn't that money be invested inside the US ?
Do the guys there needs a shopping center and a cinema inside the embassy , its really crazy news.
Thanks for the explanation for hedge. I see it in the price action. I have an idea and am going to test. I'll let you know how it goes. I found a piece of broken code that I am working on. Probably have to ask for help from somebody.
My wife has a friend in California. She is on some kind of State assistance, I don't know what. Her last assistance check came in in the form of an IOU. I read about this a couple of weeks ago, but thought it was only news rhetoric.
Apparently it is true. The State is broke. The weight lifter is supposed to be married to someone that is knowledgeable. ?????????
Out of the U.S., 14 states do not have deficits. Why are not the other states asking what the 14 are doing right. (Spending)
In the last few photos of the President elect, he looks like a "Deer In The Headlights". Not like the campaign trail. I think this is the scenario:
All of the Clinton picks for cabinet, are going to turn against him. The "Smoky Backrooms" have been working since the campaign. The future will tell. (IMHO) Picks have no experience. Clinton control.
My opinion on the 700 million Embassy in Iraq: I looked at the photo. 1 speaker, 3 men before the flag, and military color guard. The camera didn't show the empty parking lot. HA HA Inside, we need to make these people comfortable, while whiling the time away. The building costs so much because it has been built super strong. The future result will look like this;
Alfred P. Murrah Federal Building - Wikipedia, the free encyclopedia
IMHO, this is a total waste of money. Don't they have Saddam's Palaces that could suffice?
In the photo, the guy walking down the driveway, is measuring the building.
I hope your Dad isn't caught up in this debacle, as far as medical or pensions.
Also, don't you like the late afternoon-evening, lazy markets?
Also, 1 Trillion Dollar Federal Deficit in 2009? This is giving me brain damage!
I don't know how this is sustainable. I guess wacho thinking is good for trading because it keeps volatility high.
Montreal: 8 degrees @ night. Climate change. Throw another log on.
P.S. Alan, PM me at usual X mail address. I have something for you.
In the meantime,