Forum > View Topic (Hot-Chart)
by Ashraf Laidi
Posted: Dec 11, 2009 0:10
Comments: 198
View Hot-Chart
This thread was started in response to the Hot-Chart:

Euro's Third Down Leg

 
rkkashmir
Posted Anonymously
14 years ago
Jan 5, 2010 19:29
Said,

I agree with your assesment. My point is there was NO fundamental reason for the 400 pip explosion in GBP last week, nor for EUR to rally to 1.4475 last night. Although long term I am not particularly bullish on $USD, in short term I am.

The "perception" is that the FED will raise rates sooner than later, hence the strengthening in USD first quarter of 2010. However, I personally do not believe the FED will raise rates until late 2010, if that. The reason? They know (along with the PPT) that if rates are raised, say goodbye to the U.S. Stock Market. And all they care about are stock prices 'cuz they have the public duped into believing a recovery is on the way because stock prices are higher. However, the missing piece to the puzzle is stock prices are only higher because of PPT intervention. Stocks rose 60 plus % from their lows in a very short term. The market is about to tip over and go down again. When this happens, people will flood into the USD.

To have a legit shot at recovery, the unemployment numbers MUST start bering reduced. a levelling off is NOT good enough. A levelling off will only represent a stabilization in the economy. No reason for stocks to be 60% higher. The NFP number will on Friday will show exactly this, "stabilization" in the unemployment rate. This will be construed short term as USD positive.

Ride the USD train for a month, then reassess. In the meantime, any manipulation higher of GBP and EUR should be used to establish (additional) shorts). And manipulation is the only reeason these two twins rise these days.
said
France
Posted Anonymously
14 years ago
Jan 5, 2010 19:00
kashmir
we all know the eurusd trade according the stance of the us production economy and that on european side the economic indicator are accomodating the pair due to a simple fact that in europe its an INTRACOMMUNITY exchange.
dont get ur point but i am very interesting by your says
said
mulhouse, France
Posts: 2822
14 years ago
Jan 5, 2010 18:56
kashmir

if weak dollar was good for US economy why would they reinforce the dollar? if nothing goes right in the us economy why buying dollar, we all know hte eurusd trade a
said
mulhouse, France
Posts: 2822
14 years ago
Jan 5, 2010 18:29
kashmir

i read an article on PPT sounds interesting but what is the purpose of it?
i reiterate my question? are they in dc or new york?
said
mulhouse, France
Posts: 2822
14 years ago
Jan 5, 2010 17:43
rkkashmir
and the PPT are not in newyork.
rkkashmir
Posted Anonymously
14 years ago
Jan 5, 2010 17:02
Said,

Good point, but allow me to ask who orchestrates the short squeezes? Answer-the "money takers", er, "market makers". Quite honestly, the manipulation in FX far exceeds any other market.

Ashraf posted the link to the Plunge Protection Team on his Twitter page. The PPT has been around since '89, manipulating beloved U.S. stock prices higher. Yet the PPT is small potatoes with respect to how big a move percentage-wise they can orchestrate as opposed to FX Dealers in a highly-leveraged market with limited liquidity as we had last week. hence, the gross 400 pip move in GBP. Merely orchestrated to square books at the end of the year, and run stops on the unsuspecting.
said
mulhouse, France
Posts: 2822
14 years ago
Jan 5, 2010 16:39
rkkashmir

what if this eurusd big toys were just short sqeeze and not market maker manipulations.
rkkashmir
Posted Anonymously
14 years ago
Jan 5, 2010 16:35
Xaron,

Unfortunately what most traders "say" and what most traders "do" have little correlation. Just the same as fundamental analysts, who are always late to the party because they cannot/don't know how/refuse to understand even a shred of technical analysis.

In the micro-short term, markets move in wierd and inexplainable ways. USD strengthening against CHF and weakening against JPY? Simply market-makers moving the Jell-O around the plate running stops.

Because of the leverage in FX, sometimes it is harder to see through these forests and hold a position "longer" term in order for the trade/position to work out.

Just look at the lovefest with GBP last week. Simply astonishing the near 400 pip in one-trading move up which was orchestrated by the "money'takers". Now come on, there is absolutely ZERO fundamental reasons to be long GBP, yet they used their boy to EUR/GBP to run stops and wreak a one-day storm on the GBP shorters.
chloethebull
Canada
Posted Anonymously
14 years ago
Jan 5, 2010 16:14
looks like were back to usd being the whipping boy..lol..gl
mondo
portsmouth, UK
Posts: 22
14 years ago
Jan 5, 2010 15:38
xaron can the ecb hike with spain portugal and greece in such a mess?