Currency Wars

A 1000 pip move in the EUR/CHF this morning must have produced quite a bit of pain for those currency vigilantes. My condolences to anyone caught in the fray but I have learned the hard way not to fuck with the Swiss. They may be all polite and reserved but they will slam your dick in your door jam when you try fucking with their currency. You may recall that I suggested the possibility of an SNB intervention a few weeks ago.

Of course if you are holding a savings account in Swiss Franc your savings were just reduced by 10% – that’s nasty. So much for banking in Switzerland – something I have argued against for quite a while now. Simply – in my completely unprofessional and personal opinion – Switzerland is not safe anymore for several reasons. I know many of you will disagree with on this but I’d feel a lot safer in either Hong Kong or Singapore.

Finally, what does that really say about the safety and permanence of any fiat currency? No wonder everyone and their mother are pouring into gold – folks have grown sick and tired of being implicitly taxed by inflation.

This is a snapshot of the EUR/USD panel on the ZeroFX. Very much worthwhile pointing out is the big blue spike, indicating buying exhaustion. If you paid attention this morning then you’re sitting pretty right now. BTW, in case you missed the big announcement two weeks back – the ZeroFX indicator is now part of the Zero package, meaning all Zero subscribers have access to it for free! You’re welcome and enjoy!

Our USD/JPY trade finally got off the launching pad – if you missed it there’s really no excuse as you had more than a week to take advantage of an easily defensible entry. Our first target is the 78 mark but I’ll keep a few lottery tickets for 79.

Equities – well, not much to add to yesterday’s charts. After dropping to SPX 1140 we are still holding the NLSL I showed you on the spoos. Some buying is expected and the Zero Lite is looking positive. But I still think the technical damage is done at this point and henceforth every meaningful push higher is most likely a ‘sell the rip’ opportunity.

Cheers,

Mole