Tag: debt crisisSort
After the Sovereign Debt Crisis Comes the Deleveraging
Skepticism about the Eurozone being able to get out the debt crisis is on the rise. Many investors are starting to sell their long-term position of the Euro for the U.S Dollar. Although, the U.S Dollar may not be the ‘go-to’ currency for all, it does look more stable than the Euro at this time. On Friday, the EUR/USD dropped to the 1.3626 low … a drop of 250+ pips in one day.
EUR/USD took out 1.3968 major support line last week and hit the 1.3836 low. Intraday bias remains on the downside, as long as the 1.4280 minor resistance line is not broken. On the downside, if the 1.3836 low is broken it will continue the bearish momentum and target the 1.3750 major support line.
S&P 500 Technical Chart Analysis: Powerful Wave 3 Bull Market Rally Not Over Yet
US equity markets have continued to make higher weekly closing highs, climbing relentlessly in defiance of calls for a pullback or a resumption of the bear market. Treasuries broke down from a month long consolidation and resumed their downtrend as capital continued to exit the perceived safety of fixed income for risk assets.
Answering My Children: What Comes After a Trillion?
The innocence and knowledge of a child is sometimes much more clearer than our insights. My young daughter asked me what comes after a Trillion dollars. My son answered a Zillion. I had to interject and add that does not exist ( yet). Maybe U.S. Treasury Secretary Timothy Geithner will invent a new number the way he is going.
In less than twenty-four hours the price of Gold climbed $65 and the price of Silver $1.20. Considering the announcement by the Fed, one has to wonder why the moves were not bigger. The Fed stated it is going to “increase the size” of its balance sheet, that means it is going to put the printing presses on full octane, maximum performance.