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BofAML Closes EURUSD Short, Fears Squeeze Higher
It is "Mission Accomplished" for BofAML's Macneil Curry's EURUSD short. Thanks to Draghi's moar-negative-rate-cut, EURUSUD pushed through Cury's objective and we note has now stabilized at 14-month lows around 1.30 the figure. Curry's fear now, given the extremes in sentiment and positioning, is that EURUSD squeezes notably higher.
Via BofAML,
Closing our €/$ short position
We are closing out our €/$ short position, as the pair has reached our downside objective of 1.3104. On Jul-08, we recommended going short €/$ at 1.3594, targeting 1.3104. This target has been hit and we therefore close out the position.
Now, momentum and sentiment have reached bearish extremes which have often preceded a turn higher.
Specifically, daily RSI has reached its lowest levels since 2Q12, while the DSI (Daily Sentiment Index) has reached 6% bulls, the lowest since July'13 (see chart on page 2). These conditions make the potential for a technical squeeze/correction higher too large to ignore.
However, we must stress that a €/$ bounce must be seen as corrective/ temporary and ultimately an opportunity to re-set shorts for 1.2787/1.2694 and potentially below to the 1.22/1.18 area
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Nice. Looks like a good bearish treasury call. Still...these are Bankers? Seem more like part of Cody's Wild West Shows of lore...
American exports are going to get killed.
But ... I guess ... BofA is going to single handed increase service revenue with it's FX financialization profits.
Thank God for the banks.
Oh ... wait ... screw'em instead ... p%%%ants.
Strange that no one reinstated Glass Steagal after the 2008 financial collapse.
BofA no longer exists in New York..."to risky a market" apparently.
Totally good on the treasury comment there disabledvet.
Batwing pattern on the DJIA too. => http://bit.ly/1fMcakI
Its about teh jobs numbers on friday, but that could be a whole run on teh algos too, set up for next week. that patern 100up 30 down and then 90-100 up could be playing out. That means we could be higher alot higher in the next few months. Xmas rally too maybe ?
Not sure how to "play" World War Z.
I don't think day trading is high on my list though. It would be nice if Bankers had a time span for a trade of say...greater than a week.
That would inspire more confidence from me in their "wizardry."
Be careful. Theres plenty of goalSeek(ed) data manipulation and funny money printing capacity left in the system to keep these games going for some time.
"to keep these games going for some time."
Exactly....and they haven't even begun to pull out the SDR casino yet....
"These games"? What, you mean FX trading? That's been around since the days of the Sumerians, and will indeed keep going for some time.
it does appear oversold.. but every pullback will be crushed
They are pumping the JPY straight to the moon; I hope the carry trade carries them straight to hell....
Unpossible since GS said "Short Gold" today. They both can't be right.
Interesting comments from a Fed Governor "Powell."
Said something about getting rid of LIBOR. Seems odd that US based assets would have their price set based on a "London Fix." I still think gold is way overpriced here...but copper, silver, natural gas, oil...whole lot of "something's" the dollar could be fixed at.
"Start actually paying for the war."
......it never ceases to amaze me that with so much information available we still have completely oblivious sheep that just don't seem to have any situational awareness ....... like this........
https://www.youtube.com/watch?v=X8AIKvld4jU
........ what's it gonna take ....
".....it never ceases to amaze me"
Agreed....I would love to kiss her ass ...before I kiss my own "good-bye"....
when will 1 plus 1 equal 2 again. how long can this bull shit continue. I have a long in my pants and yelled gonna make me short guess I need to find the pics of Kate Upton
You want Kate Upton pics plus some other naked bimbos then visit your friendly neighbourhood pirate!
http://thepiratebay.se/torrent/10957831/The_Fappening_2014_Jennifer_Lawrence__Kate_Upton_and_More_Leaked
Some screen shots availlable if you don't want to download whole file.
The games central bankers are playing in supporting their and other currencies has reached a dangerous level, we may be in the "red zone". Currencies are important chips in the commerce of government and the business of running a country.
History has shown that in the past both leaders and governments have fallen with the demise of their coin. If people lose faith in the system it could just come crashing down around our ears. At a time when billions of dollars can be traded in just the blink of an eye imagine how fast things could go to hell. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/01/currencies-games-in-danger-zone.h...