Goldman's FX Recommendation Recap In A Post BOJ-Intervention World

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Sun, 03/20/2011 - 18:58 | 1079763 FunkyMonkeyBoy
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Don't worry, you can bet your left gonad the powers that be have got a nice new black swan lined up to save the dollar...

... that european collapse seems long over due now.

Sun, 03/20/2011 - 19:36 | 1079867 Steroid
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Meanwhile, they can write a Default Swap on your gonads.

Sun, 03/20/2011 - 22:22 | 1080371 Michael
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The economic edifice of world markets was dealt a major blow by Japanese intervention entities (BOJ) and the international banking cartel last week. The question now is; When does the esoteric herd hive mind shift happen again? What day does the herd sell off mega US dollars and treasuries?

I can pinpoint the herd hive mind shift in SW Florida RE for Lee County’s median home price to December 2005 at the height of the residential real estate boom that reached a peak of $322,300.  The median price of an existing home there sold today is $94,400.  What triggered the hive mind shift? The blogosphere's housing bubble blogs certainly brought awareness to the sheeple something was wrong with paying 10 times gross income for a home. When critical mass reached 55% or so awareness, the sell-off began in earnest with many investors left holding the bag. The same phenomenon will most certainly happen to the dollar and treasury bonds as the blogosphere's work reaches critical mass in the dollar crisis arena.

The US dollar is dying, as evidenced with the counterintuitive drop in value last week when hundreds of trillions of Yen were printed. So what day, week, month, in the the near future do US Treasuries and dollars sell off worldwide?

Sun, 03/20/2011 - 23:36 | 1080537 Spitzer
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I like that, its quite simple analysis. 55% and look out. Bill Gross probably helped too.

 

Mon, 03/21/2011 - 02:09 | 1080820 robertocarlos
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The housing bubble blog rules.

Mon, 03/21/2011 - 04:13 | 1080893 Weisbrot
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the criminal consorteum that forced the EU in to existance would not allow such a thing.

Sun, 03/20/2011 - 19:08 | 1079790 Ruffcut
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As it stands I can't trade any futs.

I like my balls protected.

If in doubt, don't!

Sun, 03/20/2011 - 19:10 | 1079793 Yen Cross
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On intervention. NO INTERVENTION. I repeat! NO INTERVENTION. Spikes are OK!

Sun, 03/20/2011 - 19:37 | 1079866 MiningJunkie
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Just buy the E/S and relax. Print, reflate, debase.

Never underestimate the replacement power of equities within an inflationary spiral.

Long live the United States of Zimbabwe.

Sun, 03/20/2011 - 19:38 | 1079877 Cdad
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This Euro/USD to infinity nonsense has to be reaching its peak.  As will be proven the case for the union, surely the case for the currency will be a failure.  So of course what this means is that Goldman has to pump the currency constantly, raising targets...as Goldman, of course, uses the lift to short massive quantities of Euros.

Anyone caught long this thing for more than an afternoon deserves to lose his entire fortune.  When did "risk on" become "long Euros?"  Seriously, who is Goldman kidding with this nonsense?  Europeans?

Sun, 03/20/2011 - 20:06 | 1079945 surfsup
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They always do this right when its about to turn...  

Sun, 03/20/2011 - 23:38 | 1080550 Spitzer
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The Euro is less sick then the dollar, even though it doesn't trade that way. Europe is a net creditor for fuck sakes. Does that not say enough ?

Sun, 03/20/2011 - 20:34 | 1080024 TradingJoe
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I agree! Der Euro wird fallen, in ein langes scharfes Messer:)))! I am long Uncle Bucky, for now!

Sun, 03/20/2011 - 20:02 | 1079937 Careless Whisper
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From Goldman Sachs   

THATS WHEN I STOP READING.



 


Sun, 03/20/2011 - 20:04 | 1079944 Captain Benny
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Am I the only one thinking that its time to make the big "risk off" trades that the mutual funds and hedgies haven't done?  Short the crap out of this market!  The G7 made it clear that they want to sink their economies along with Japan by helping devalue the Yen.  The dollar sunk pretty damn low relative to everything else besides PMs ;-)  ...

 

I just don't feel good about this intervention that took place last week.  They did the exact oposite of what should've been done to help the Japanese economy as well as all of us common folk.  Once again, the Fed acted in the interests of the banking elite and not the people.  Of course GS is toting the party line.

Sun, 03/20/2011 - 20:27 | 1080012 Itsalie
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Has anyone observed any deviation from the risk-on/off trade? Non? Then why bother with a special update on the euro? Just one heading will do: risk on - buy euro, PM, junk bonds, AG, etc etc. Risk off - buy chf, jpy. In all cases thrash ben's funny money.

Sun, 03/20/2011 - 21:25 | 1080026 Lord Welligton
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I am not an FX trader.

So I didn't bother reading the whole thing.

I started to. But I gave up. It reads like a motivation session for second-hand car salesmen.

They know they're selling shit but it's thier job.

Plus they get a bonus.

So.

Can someone who is an FX trader explain to me the value of any currency?

Does it take a 9 earthquake & Tsunami? A regional war in the Middle East and North Africa?

Perhaps not.

Perhaps currency is not the thing suggested.

(means of exchange, store of wealth, unit of account)

Perhaps currency is the thing it always was.

The power to create money.

And those that have the power to "create" do so.

They of course need their well paid subjects to "trade" the illusion.

 

 

Sun, 03/20/2011 - 21:31 | 1080224 Freewheelin Franklin
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What is, what was, or what should be?

 

http://mises.org/books/historyofmoney.pdf

Mon, 03/21/2011 - 04:43 | 1080911 Lord Welligton
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Thanks for that.

Will definitely give it a look.

Mon, 03/21/2011 - 01:11 | 1080745 Yen Cross
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Have fun slicing your pound sterling little Lord Fauntleroy. I works well with a GLOWING spinach salad.

Mon, 03/21/2011 - 04:46 | 1080912 Lord Welligton
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Wellington was Irish. As am I.

 

Mon, 03/21/2011 - 01:15 | 1080749 Yen Cross
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Have fun slicing your pound sterling little Lord Fauntleroy. It mixes well with a GLOWING spinach salad.

Sun, 03/20/2011 - 22:28 | 1080388 drshock18
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It's only a matter of time before Portugal needs a bailout (april actually), Greece needs another, and Spain needs one. I'm not at all phased by the euro climbing against the dollar. The euro is way overvalued.

Sun, 03/20/2011 - 22:56 | 1080466 scratch_and_sniff
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This is most likely attempted rape, the eur/usd is at its most precarious position for weeks and they weigh in with this? I feel kind of bad for the people that actually trust these guys with their money…what goes around comes around I suppose; if you are dealing with GS god only knows how many people you have raped.

humm, they went long some euro on Friday, well that’s strange, because i would be very surprised if they weren’t buying it on thursday night for the final leg up. I see a wedge playing out here as there are still too many lingering doubts for the kind of strength needed for a break out, they're just not the kind of concerns that disappear at breakout speed, and I doubt a breakout would convince anyone the concerns have gone away, a wedge suit’s the backdrop perfectly, i.e a retest of 1.35/6 (thats close to GS stops! how fucked up is that?) after a few more stabs at 250-80. No rush.

Sun, 03/20/2011 - 23:41 | 1080555 Spitzer
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You like the dollar at 75.6 ?

Mon, 03/21/2011 - 13:23 | 1082267 scratch_and_sniff
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Saying that i might fancy the dollar sort of takes the shine off shorting the euro. No i dont really fancy it, just weary that the euro is getting ahead of itself-at this rate we will be checking out all time highs, in no time at all. I dont like making calls against any trend(and technically this is a strong one), i feel its over done for now. Just waiting it out for the catalyst. If we dont get it, i wont have any trouble getting back in.

Mon, 03/21/2011 - 00:22 | 1080634 99er
Mon, 03/21/2011 - 04:15 | 1080891 Weisbrot
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.

Mon, 03/21/2011 - 04:15 | 1080895 Weisbrot
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I would like the dollar at 80 but see it in the 60's - in the not so distant future

Mon, 03/21/2011 - 04:38 | 1080904 Buyemall
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It must be a first since a break in the correlation between the eurusd and the stock market is interpreted in terms of the currency pair condition. It is usually the other way around.

Mon, 03/21/2011 - 04:55 | 1080921 GFORCE
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This makes me happy with my Euro short, knowing that the squid is about to join me.

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