quite possibly tonight FX EURO 1.4740 short British Pound 2.1140 short (2.1370 possible) a VERY real chance of a short covering crash in the european currencies DO NOT hold longs overnight!
Why? Why predict? Why could NOT the euro go to 1.50? Or 1.75? I am not saying that the euro will not reverse at some point but we are not there yet. Meanwhile you could get squezed out. Remember the markets may remain overbought, overvalued or irrational, longer than you may remain solvent.
I'm inclined to agree with the OP. Beginning to resemble classic blow off top. Fundamentally, things are changing.
we are in the prediction business, and any of you who say we arent are full of shi* .. i predict what the charts tell me. and the charts say the euro and the pound are going to get slaughtered near term. i have my stops.. targets will take care of themselves.. and they are much much lower
Fundamentals aren't changing, people don't know how to handle extremes and thus automatically assume a trend that has gone for a long time will end and reverse soon. That is the surest way to the poor house. There is a reason why the USD has been so weak, just look at who's in charge of the printing presses. Its Helicopter Ben.
Fed lowering rates, while the rest of the world rises; providing gifts, um, loans to the banks and US budget deficit.
you actually think theyre going to wait until the UK starts lowering rates to start selling the pound? If funnymentals meant anything the british pound would be worth less than $1. Their property bubble is EVERY bit as BIG as ours if not more so.. and they have per capita MORE debt than america. two currencies are more responsible for this entire debt mess than any other.. the japanese yen and the british pound. BOTH will see huge reversals in the coming year.
Fundamentals are absolutely changing. If you're not seeing it, then you're not paying attention. I don't mean to be rude, but I call it as I see it, mate.