Wednesday, October 8, 2008

yen, euro, gold whats next

Play the crisis have never been this lucrative, and the second short position should have been closed yesterday for usd/yen. Like i said always have a cut, loss or PT level as it is  crucial to protect paper gains, and do not let the greed lose a short from two nights before at 101.5 would be sufficient to make u happy till the week end when u closed it last nite at 99 level, and gold has spiked by 35 points last night should we start profit taking, preserve your capital and play with house money only always set a cut loss point and move the TS up according to profit as you need to protect your gains.

Looks like the treasury for 10 years note have started to decline with a sudden coordinated move to cut rate, i mention in many of my previous post that this is a coordinated move to support the USd and maintain its hegemony status in the world trade, and the FT zones is another way to make support to the debased fiats. 

One point we should take note is that while coordinated actions are suppressing any sellers in the dollar we are going to look at the bigger picture with the furthur inflated dollar and unlimited printing press working hours. Yen is  currency to look at when we predict the unloading of foreign assets from countries outside the dollar, the dollar looks good at the moment but it is only better to establish a short position, the higher it goes the more shorts will start to appear as fundamental wise, debt to gdp shoot up, deficit shot up, the money supply shot up , unemployment shot up what else shot up the dollar shot up in contrary to the decline it should have experienced. 

To justify my statements are the value of gold which trailed the dollars appreciation, this is no change in the major trend of the dollar, it only depicts an illusionist waving his magic wand and putting a cloak on the dollar fundamental to push it up. Gold is telling us the story that it is not true to continue buying the dollar story as history shows whenever the increase in the dollar value the gold price would drop but these few weeks are turning the story around. THIS furthur confirms that the dollar index only reflects the weakness in euros and the other currencies they are benchmarking, the other indicator is the value of yen appreciating against both euros and dollar, shows that it is unloading of assets and reverting back to dollar from the carry trades that were supporting the dollar.

With a global coordination to speculate and manipulate the dollar to deflect any selldown of the dollar will only provide a safehaven in gold, as it is the one true denomination that is considered as world currency, where else can you find an equal status of valuation in the entire world accepted so widely!! It is the mastercard and visa of currency, it is the godiva of chocolates, it is the creme de la creme of the purchasing power  protector. It also strikes me as China has no intention of appreciating the RMB and so is yen, they both hold large reserves in the dollar, which would emerge as a better currency to hold when the dollar bubble go bust, the treasuries will be sold down , interest rates will go no where but up!!! liquidity is only another archaic phoneme combinations when they are holding fiats that are obsolete.

No comments: