America, We Have A Problem
I’ll spare you my personal thoughts regarding the FOMC’s non-taper announcement just minutes ago. If you have been visiting here for more than a few weeks then you know my general outlook on how the game is being played. And if you’re new here then let me boil it down for you: The crooks always win in the end and there is no final justice. Swallow your anger, embrace the pain, and try to ride their coat tails.
However, we have a much more pressing problem. Mere minutes before the announcement I happened to look at the DX and produced the chart shown above. If you’re a sub then you probably recall that I had pointed at the 81 mark as our final LT line in the sand.
Well, thanks to Bernanke & Friends that line in the sand was just washed away by a veritable ‘risk back on’ rip tide which washed ole’ bucky all the way below 80.5. I had my order waiting but got a lousy fill – no surprise there. The day isn’t over and perhaps we’ll recover some of that emotional territory but this is very very bad news – or in other words: America, we have a problem.
This is a technical LT short entry and the current target is near 77.5. From a trading perspective this is a fine entry and it’s supported by the P&F shown above (which my subs probably recall). A close below 80.5 will seal a triple bottom break out and increase the odds that this target will be touched.
From a general perspective as an (expat) American this makes me extremely sad as the Dollar’s purchasing power was just eroded a little further. In the international currency free-fall race to the bottom it seems that Bernanke is determined to win the game at all cost. I can’t blame him as it’s the only bullet left in his arsenal. But the further financial damage this is going to inflict on working class Americans (and other people across the world – this is not an isolated issue) will be tremendous. I don’t have to explain to you how stretched to the max folks are out there and expect commodities (especially fuel) and food prices across the board to respond in kind.
Another sad day for America – unfortunately given the political stalemate and inability in Washington the best we can do is to protect ourselves by proper hedging. I have been warning everyone about this situation for weeks and months now and I’m rather perturbed to see this DX trade having triggered.
It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.