In a word... "Contagion" This is why I only let go part of my short position Friday, of course as usual I don't get too wrapped up in early trade, but the news from Europe has been horrible and now the word "contagion" is no longer reserved for just the PIIGS countries, it's hitting the Euro core and even more shocking-CHINA! Asian Credit Default Swaps are being bid up in Asia.
As far as the thrust of this move, as I said last night, they'll take the market to whatever level will inspire shorts, we need to keep an eye on 3C and the underlying action, but this was certainly one of my targets mentioned last night and last week and probably the week before that...
The print just below the triangle, however we are seeing some upside off the lows, I will put out a 3C update shortly.
As for the Euro/USD, here's what it looked like last night
And here it is today, the important note here is that the Euro is holding above the very important $1.40 level-even if just barely.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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