Discussion in 'Trading' started by Digs, Dec 12, 2007.

  1. Digs


    The ECB and the FED have got together to halt the $USD dollar decline and use other means than the Feds Funds Target rate to inject liquidity into the global banking system.

    Why else did the ECB act in line with the Fed. They have a cunning plan.

    TAF... we will hear more of this.

    LONG Why...
    1) USA Interest rates easing has slowed, maybe to stop.
    2) ECB cant afford the EURO to get too strong
    3) Massive short positions on $USD and a small spark is all it needs to profit take on these positions.
    4) Run to Saftey
    5) Europe and Japan economy slowing .
    6) Small technical inverse head and shoulders on $USD daily chart.

    Warning : Maybe a short rally, but a rally.

    UPDATE : Not good for stocks, as stocks need constant interest rates cuts to provide the much needed market juice.
  2. Yes, quite prescient. The fix is in.

    However, what happens when the fix doesn't work?

    That is the issue.
  3. Digs


    Reference to the FED tough spot :

    See attached.

    So what of stocks come off there 5 years high, I mean really so what !!

    My bet FED wont care either and work to firm up the dollar.

    FOMC To Wall Street: "I am not your bitch anymore !"

    The Fed Fund Futures : CANCELLED !
  4. twang2


    anyone ever heard of a 7 year cycle in USD?

  5. Digs


  6. smells of a short covering rally since shorts have to eventually cover the get paid for '07...

    bond market vigilantes may be stirring since the last Fed. practical joke fell flat along with the SIV Fund....

    S&P action in the last hour today really tells the story

    I guess if you throw crap against the wall hard enough, some of it sticks...

    an opinion of course and I could be wrong...
  7. Inverse H&S on 8 hour chart (USDJPY)
  8. =======================
    Since this is for educational purposes;
    agree with your 12-12-07 call.Related trend comments following.

    7.7 ] Invstors Business Daily [website] had an uptrending 2o year or so chart of USD earlier; didnt pay that much attention to it, i have enough on my plate now.LOL

    12-4-07 or 12-11-07]. Forget if it was 12-4 tuesday, or 12-11 tuesday;Jim Rogers [Jack Scwager interview investor] told Larry Kudlow, end of day interview''Too many bears on the dollar''

    Chief of CFC said his stock was better than MSFT;
    perhaps in dividends, perhaps in the past. Perhaps from a polar bear point of view,its better..

    Trends past year of some smaller banks & MSFT look much better than CFC. Not a stock tip.