Archive - Feb 23, 2013 - Blog entry

Tonight we Divine in Bunga hell...

All Capitalist Systems Have Some Inequality.  We Don’t Want To Prevent All Inequality … Just Economy-Wrecking Levels

See why Moody's downgrade of the UK credit rating is unlikely to impact the financial markets or UK policy.   One of the sub-arguments is that the divergence between the US and UK monetary policy in recent months cannot explain sterling's slide in the foreign exchange market.  Moreover, the UK's exports seem more inelastic to UK exports that the currency warriors would suggest.  

Depending upon the time frame natural gas is either in a distinct downtrend channel or a parallel trading range. 

This week's events show that the Chinese government realises that its stimulus efforts have got out of hand and its economy is in trouble.

Instead of looking at the daily bar charts for the major currencies that we provide every week, given the large moves, we thought it might be helpful to look at the longer term charts.  It is one thing for pundits and other observers to argue that QE drives currencies down, it quite another to operationalize and use that as a decision-making rule for investing or trading the foreign currencies.  The way people make money in the markets is not being right more often, but disciplined risk management.  Technicals allow one to quantify risk and admit where one can be wrong.