Posts by "daveo"

GU approaching that important level at 1.5935 again. A break will signal 1.6053 on my chart.

good news from US has tended to crater the DX in recent times. Then stocks up

Chloethebull,

While you waiting for Ashraf reply I been in England for 66 years. I been bearish our economy since 1998 so perhaps a little biased !

UK is basically bankrupt just like the USA, Jpn and most of EUR. And that's without talking about pension liabilities and demographic nightmares lying just around the corner.

The tax you refer to is our VAT on goods and services bought and sold. The VAT rate was at 17.5% for some years and then after the financial bank crisis they lowered it temporarily to 15%. It will now go back up to 20% taking effect in Jan 2011. This will not help to reduce our inflation in the shorter term but that is not an issue because the whole world will enter a deflationary spiral environment, perhaps lasting several years.

Our new coalition government have pledged radical cuts in public sector and in downsizing government to reduce our deficit. Also they plan to force the long term unemployed back to work but the planned cuts will lead to massive unemployment in the shorter term. Also the UK has a difficult problem controlloing immigration, we pay for our past commonwealth and colonial sins as well as being controlled from Brussells. This places even greater pressure on jobs.

The markets are believing our plans to radically cut the deficit so our credit rating is still AAA. So far the government has been all talk about cutting the deficit but putting it into practice will be a very different matter indeed. The markets will not exercise forbearance forever. We will have to wait and see who are the the comparitive winners and who the comparitive losers in the battle ahead. The entire planet will be the loser once this whole situation has played out. You can blame the banks and corrupt governments for that.

The only good news I see out there is related to what our scientists are doing on a worldwide scale. If anyone manages to salvage this planet it will not be the money spinners or corrupt governments, it will be the scientists.

My simple response is the word "always" is not in the trader dictionary. Compromise is. Buffet made some pretty bad mistakes which he might not have made had he read a very common sense economics' analyst. Not talking about an acedemic here, just good old common sense. So even Buffet is a compromise. I don't know you very well Catnip but I get the impression your trade targets are rather vague. Forgive me if I am wrong. I have to have very specific targets to be able to work very tight stops in my trading. Equallly, targets for TP's at logical levels. Fundamentals cannot give me specific targets. My tech analyis can. Short term fundamentals can support or otherwise a trade idea derived from the technicals. That's about how I see it but I shall make a point of learning any value from you and this forum.

EURUSD still respecting Ashraf's tight trend support line on the daily timeframe so far today. We really are overdue at least a few days of correction here to give me some pattern to work with. My ideal target for a significant high is still at 1.4040 but meanwhile it kissed the 161.8% ext ret of last swing down (1.3795) rather neatly. This post just to irritate the fundamentalists.