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EURCHF Takes Out Stops, Down 100 Pips To Fresh All Time Low 1.2560
Not everything continues to be happily melting up courtesy of today's first of two POMOs in progress. Over in Europe, the EURCHF continues to flash a red alert, demonstrating that despite the overeager attempts by the various central banks to paint a rosy picture into year end, just like in 2009, not all is good, as the EURCHF freefall refuses to abate, and the pair dropping as much as 100 pips on the day in otherwise quiet trading. The relevance of this pair was previously discussed extensively by Nic Lenoir and Bruce Krasting. At this point one has to wonder just how XXX-rated are the pics of Hildebrand that are in Ben Bernanke's possession for the Chairman to have so much leverage over the Swiss National Bank, which has pretty much given up on monetary intervention/stimulus. Oh well, who cares: it's only the current account side of the GDP. The country can simply stock up on a few hundred billion in inventories just like the US and call it growth. Mission accomplished.
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TD why are brining Swiss back , don't you think Swiss has nothing to offer.
If it was not for storing stolen WWII gold and art and diamond, Swiss is another poor European country.
They're brining Swissy back ... don't have a heart-attack ... ;)
Just mild Chest pain, The cholesterol content of swiss cheese was very high!!!!
may i suggest to go fuck yourself dear sir,
I second that suggestion.
I 3rd that comment, it is a well run and better capitalized country
Stuff the channel, call it 'recession over', continue to flood with Fiatsco...mission accomplished world back in a bubble. Highly troubling fragile bubble, but what do fractional reserve banksters care? When they can no longer move the goods thru the front out the back, they bust out the place Goodfellas style and collect on the insurance.
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
-A Mr. Thomas Jefferson
The game with the banksters has always been to inflate and deflate. Read the featured article Is the End Game of Wikileaks Internet Censorship?, inflate then deflate was what allowed the crooks to enact the Federal Reserve Act of 1913. It led to the roaring 20s and the GD 30s. It is happening now but with so much intervention from the Fed, a bit slowly. Deflation is happening and it's only a matter of time before markets price in reality instead of ink fumes from imaginary future Fed intervention.
The dollar index looks like it's bottoming, a process that has been brewing since 2008. Europe is in an icey fire so I'd rather err on the side of deflation.
http://futures.tradingcharts.com/chart/US/M
Volume is paper thin so stocks are easily manipulated upwards. I am staying short.
http://unconstitutional.blogspot.com
Looks like some big players are getting nervous about EUtopia.. whoops
EU may be right..
1.18 a coming
Europeans sitting home stuck in the snowstorms watching the S & P 500 must be ebullient.
U.S. stocks are now screaming to new highs...
Or if they have a brain, highly troubled by the 100 P/E brigades zombie slouching upwards daily against any common sense.
Most Europeans can't tell the difference between Ben Bernanke and Bernie Madoff....
They see the rises in the S&P for what it is, the last gasps of a dying empire...
Last gasps indeed. Without $12 billion daily propping up the zombie markets, theyve got nothin.
Wow. That is one of the greatest quotes I've heard all year. +10000!
Yep...it is a freakin' bimbo contest...which is just sad. Look, I try to be a gentleman for a lady. I respect the dignity within. I am a believer in the sanctity of life. That said, it isn't like I am not moved by fishnets and mascara, if you know what I mean.
But maybe as little Miss Euro goes all Lohan, perhaps, Ms. CHF is just going to skip all of that and go straight into the escort business. It is hard for me to tell, of course, because I do not trade currencies, but what is clear is that equity markets are apparently now deaf as well as blind...as the VIX creeps up on this very curious of days when all forms and types of paper on the entire continent of Europe are smoldering...as the criminal syndicate known as Wall Street is planning to hit Madison Ave and go SHOPPING as soon as they are all done getting drunk at the Open Bar at the Roach Motel [SPY]...in the year of our Lord 2010, the year The Blow Horn invented the concept of self-gifting.
That's it. To the closet I must go where I'll be plugged in and monitoring things from there under a big pile of coats because...I'm not sure how much more of all of this I can take.
Just remove ZIRP and daily POMO's of $12 billion avg and what are we looking at? Straight into the abyss.
you got to read eleven minutes by Paulo Koelho about swiss escort business.
Looks like the Europeans are digging up money out of their mattresses and buying U.S. bank stocks...
LOL....
Robo,
However, and maybe because of God's gentle hand, at least $9 burritos [which actually cost $11 after you also purchase the Novartis products required after eating that health food] are NOT UP. Sweet! Another broken chart.
One at a time, I guess.
P.S.
You know what the best thing about being under a big pile of coats in the closet is ? [besides being perfectly hidden from FBI guys]...CAN'T hear Erin Burnett's voice from here....who should, consequently, switch over to the Food Network where she would be drop dead adorable if she did. Just sayin...
The S&P is breaking to new highs in Euros and Pounds only due to the fact that both currencies ( particularly the former ) continue to chronically devalue . When priced in gold things don't look quite so rosy . Then of course there is the issue of volume volume volume . Or lack of it rather . I'm waiting for the S&P to scream forward on respectable volume .
Problem is, retail isnt coming back to the crooked casino. They hate Wall St and hate the banksters and distrust govt 'oversight' which is a joke. Where do they find their volume to dump to after the FED finally chokes on its own gluttony avg $12 billion/day buying mania?
Exactly . Money still flowing out of equity mutual funds and that trend shows no signs of slowing . Basically what we have here is the perfect storm . A market that has risen on poor volume and is thus not an accurate measure of overall confidence , a market taht is overvalued/overbought , bullish sentiment at ridiculous extremes , the VIX near levels not seen since 2007 and a macroeconomic outlook for/current state of most of the world's leading economies that is far from healthy . In short , there is complacency where there should be realistic concern .
With troubling thoughts like that bouncing around in your head, you should probably report to your closet and get under a big pile of coats. I can tell you from a LOT of experience that it is quite comforting in here...and you will find it even more comforting how you can no longer hear Erin Burnett's voice, either.
But I hear she is thinking of going over to the Food Network [where...if she did...I would NEVER MISS AN EPISDOE.] And neither can you hear J. Kernen who, just today, showed that he was still just smart enough to know that oil is priced for stupid...so...you know....this is still some hope out there...however fleeting.
Its the little players who are getting nervous. Don't want to leave their money in European banks or the Euro over the holidays. Even the Germans are converting. Easier short term than trying to buy e whole load of physical PM
Gentlemen and ladies,
hate to throw out the what if, but what if the market is no longer a market and pullbacks are truly a thing of the past. Imagine if you will the S&P500 simply grinding higher without end. That the Fed has, is, and will continue to go all in. Will buy up $3T, $5T, all $9T in T's? Certainly means there will be no interest rate shock and certainly means interest payments will remain at historic lows. Bond vigilantes be damned. Will allow Congress to continue massive deficit spending so Americans don't ever get mad enough to question the nature of our system. No hyperinflation but just continuous grinding high inflation slowly sucking the world dry.
Fed and it's minions will buy up enough stock market margin to drive prices high enough that volume is pathetic and market is easily controlled. Any hint of a sell off is met w/ an urgent buyer in the pre-market, late day, or after hours market. Compression of margins, slow death of the economy simply don't matter to those w/ bottomless pockets.
The $ is still the reserve currency and seems to still benefit all parties or at least no consensus to move away has been reached. Of course, the moment this status is lost the entire paradigm is crushed and America is out on it's ass...but til then, not sure anything can stop it. What if this is the new normal...we have arrived and this is the new world...the new economy of the 21st century? Short of a major player wanting to tear down the current system or rock the boat, seems this can continue unabated?
Surreal, yes, but also seems to be real! I don't say buy or sell, just acknowledge what it is - complete market capture.
Hambone,
That is exactly what is happening....now.
However, what most folk understand is that this will destroy us economically...and so there is no point in it...well, most folk except Ben Bernanke and the entirety of the criminal syndicate known as Wall Street...which is the biggest walking zombie on the planet.
I'll put the question back to you...How many money managers do you need if you have no money to manage [or if money actually is bananas now...which ever]?
Agreed, this is economically destructive for America. But I don't believe the Fed has the interests of American public at heart. I think the Fed has the interests of a corporotist elite who see a strong America as a threat and would rather see weak, divided nations easily corrupted, bought, and controlled. Look no further than $9T handed out to the biggest at the bottom of the crisis with everything at fire sale prices. It must have been like X-mas come early to buy anything w/ free money when no one else could get any!!! Oh, and then they pay back their "loan" w/ a .10% interest and Fed claims a profit for America!
Seems a small cadre of global citizens with huge extra national holdings are winning this game.
well summed up
" surreal, but also really happening. "
I have thought about this too, especially equities. Real money outflows are being replaced by HFT (40-70% of volume) that can go higher. The market with all reality checks taken out is now in a world of its own devoid of gravity.
The check on it is any time the spendaholics in govt needs a boost in treasury issuance they can scare the equity market with a flash crash for a flight to quality in bonds. Even though the real money is less and less, the equity market has strong ties to psychology of the average person.
My SPX 1250 target hit, and exceeded. Should easily see 1275 by year end. Next year we get to 1400 easily.
Put some tight stops. The wheels are about to fall off.
The EURCHF pair is now bouncing around the long-term -50% Fibonacci level @~ 1.2621. Usually, the pair will break back above this level for a re-test. If it bounces, the penetration failed. If it breaks back below, it could well be game over for the Euro.
Watch for the whiplash in this area.
:D
""the overeager attempts by the various central banks to paint a rosy picture into year end, just like in 2009""
Indeed... US Equities are setting up for a selloff in second half of January, just like last year....
Sorry, ain't gonna happen
I do love CHF.
Having moved some of my EUR into CHF a year ago, I'am still a bit uneasy with the CHF.
Mostly because their central bank got active in the market last year to try to stop the EUR from falling. So they printed CHF for buying EUR. Not a good idea and it did hurt them with some billions of losses.
They are worried about their export industry (even though they just had a plus of 8%), especially because a bit part of it goes to Europe so the EUR market.
At the end one realizes that all paper currencies are now in a kind of devaluation race. No one has an interest in letting his currency fly. It's exports, jobs etc. so given one should probably bet on commodity oriented currencies (AUD, NOK,...). Even better is of course to directly go into values, so PM, farming land, commodities etc.
Go back and look at the chart since 2003. EUR/CHF is at an all time low. So it is not just this month, it has been going on since the start of the crisis in the end of 2007. Food for thought.
time123
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