Posted by tomasthetank on November 6, 2010 at 4:19pm
From the daily charts on all three i believe we could be see the FTSE , DOW and S&P hit 6015, 11700 and 1250 before a correction.These level coincide form a resistance level that backdates to 2006 and has been a level of resistance prior to the previous highs in 2007 and support before 2008.
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HOW COULD EURUSD rise 3.5% during the same 2 weeks when Irish/Greek/Spanish 10 year spreads rose 20-25% relative to Germany? Anticipation of Feds QE2 has been the main catalyst. But the euro can no longer sustain those highs solely on the back of the Fed asset purchases, while shrugging the ensuing widening in corporate spreads. Irelands ambitious new budget (yet to be approved in parliament) aims at cutting the deficit to 9.25%-9.5% of GDP in 2011 from the current 11.9%.EUR PAYBACK PART 2: USD stabilizes after US jobs growth outpaced expectations in October along with +110K in upward revisions for September and August. Non-farm payrolls, rose 151K in Oct from a revised -41K (prev -95K) in September and a revised -1K (prev -57K) in August. Unemployment remained at 9.6% for the 3rd consecutive month. HOW COULD EURUSD rise 3.5% during the same 2 weeks when Irish/Greek/Spanish 10 year spreads rose 20-25% relative to Germany? Anticipation of Feds QE2 has been the main catalyst. But the euro can no longer sustain those highs solely on the back of the Fed asset purchases, while shrugging the ensuing widening in corporate spreads. Irelands ambitious new budget (yet to be approved in parliament) aims at cutting the deficit to 9.25%-9.5% of GDP in 2011 from the current 11.9%. EURO SHORTS WILL NEED need to see a weekly close below $1.40 for hopes of prolonged declines, but only a close (later next week) below the 200-week MA of $1.3938 would sharpen selling. A close above $1.40 this week, could qualify EURUSD for renewed gains towards $1.4320 & $1.4450 resistance. EURCAD DROPS below $1.41, testing its 55-week MA for the first time this year. The cross-over in weekly stochastics aiming at 1.4040-50 support, which would be followed by 1.38. HERES THAT EUR vs SPREADS CHART
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A BULL MARKET!
So far, this stock market is doing everything we expect to see happen if following a bull market. It acts like a bull, trades like a bull, goes up constantly like a bull... so it is a BULL!. Make no mistake! This is not going away any time soon!
our noble friend oscar
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