Friday, October 19, 2012

EURO and AUD

I just took a look at both currencies and for the move we are looking for, a volatility shakeout (which I don't want to mislead you, it has to be scary enough to force the shorts out and inspire the longs to come in the market in droves, but at the same time I don't expect a month long move to the upside or anything like that) both have the positive divergences needed, this is how we confirm our analysis, we look at a number of different assets and see what signals they are giving, as long as you understand the correlations, it's the entire premise behind 3C.

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