Says my tea leaves.....I looked into my cup the other day....I saw, dollar up, dow up, gold up......and what looked like a black fluffy rabbit.....reading these things is an art form you know.
Borrowing rates in euro and jpy are lower than USD which means they become funding currencies for risk on trades and a big market sell off means an unwinding of carry trades = euro and jpy strength, us dollar weakness. If we happen to make a significant bottom in US stock markets that turns into real strength we could make a decent attempt at the old highs.
USDX needs to close above 98.60 and euro below recent lows at 1.0820, if we do theres a strong chance we are heading for the january euro low in at 1.0710 and 99.90 to the upside in USDX
sell off in bonds, AUD and USDJPY heading back up, muted downside in us markets, I want to believe this was a suckers rally in the euro and it will head back down from here
Why do I get this feeling that there will be a fake out break lower just to suck some more money in before the big push forward?
No....not really.....but I like the death cult bit.. I don't agree with everything he writes..... He reminds me of Skyrocket sometimes.....so no, I don't always agree.
Now we are really, really, really close. This is a big fake out. Euro pushed to 115. All systems ready. Prepare for re-ignition.