Tuesday, September 6, 2011

Euro on the Precipice

A stronger dollar would not be good for U.S. equities. EUR/USD is up ten pips at 1.4107.
While SoH is looking for a February 2013 bottom while we are thinking mid 2014.
From Slope of Hope:
(click to enlarge)
I think the likelihood of the ES making its way to my target of 1050 this month just went much higher. The most likely market to lead the way there is our new friend the Euro. Again, by the time you are reading this, these charts could be incredibly stale, but here's what I'm looking at now:


This is a huge, huge month for news. Shalom's big announcement on September 21st might be what pivots the market to its last hurrah before the ferocious bear market I've been dreaming about kicks in. The monster event closest to us is the German high court's decision on Wednesday which could drop a nuclear bomb on the Euro. Then both Shalom and the POTUS are yacking it up on Thursday with their usual crap that won't make any difference to anyone.

Look, the market is doomed. The bulls are going to be completely mauled, and this market isn't going to bottom until February 5, 2013. We have to deal with the crap that the politicians are going to hurl our way in order to "save" the market, so my main goal is to not get badly hurt during those instances when the Washington wackos try to muck the natural cycle up (which they did in a horrendous way from September 2010 until July 2011). This bear market is natural and necessary. The politicians trying to get in its way are heretics against the forces of what is right and proper....MORE