Agree⦠but the West needs to tread very cautiously here ...a sudden bursting of the liquidity bubble will be disastrous for everyone
There is no doubt it would cause problems, but won't it burst anyway? Releasing all this "liquidity" is just turning perfectly run corporations into the housing market. Highly leveraged and prone to a huge collapse. At some point the private sector will refuse to take on more risk. Then what? With breadth getting more narrow we could make the case its already happening. The global markets need less government participation.
Just saying can't be sudden...needs to be gradual..which is what I think they are trying to do...what do you think would really happen if the chinese stop buying the 40 some odd yards of treasuries they have been averaging yearly or begin unloading the 400+ they already have?
The FEAR is growing. Will payrolls force 'em to capitulate? Will they have the stones even to hang on into that news?
I'll trail my stop to entry, which is .8257 avg'd in, after Monday session is in full swing. Presently, I have the equity I want, one third the way to my take profit (.8120), but only after the boost of a good US payrolls. That's why I'll trail the stop to break even.
I am long here @8210, thinking we are going to get a spike next week above 8300 then when the bonus money is available mid month it will pour in to EMs and the yen will give up on 8200 and make new lows for the year.
Nikkei well bid early today (tonight for me), suggesting very little expectation that YEN will strengthen any time soon versus USD.