Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Night of a Thousand Euros
Ummm, it seems to me the Euro doesn't know what to do with itself. Below is just last night.
I don't trade FOREX due to the leverage. I tried it twice and failed twice. Never again. But I imagine among those who do trade FOREX have had one of the most extraordinary 20 hours in the lifetime of their accounts. For some, fortunes were made; for others, their account has been wiped out. It would be incredibly easy to get whipsawed to death with a chart like the one above.
Looking at the candlestick daily chart, the action so far suggests that the Euro run-up may be drawing to a close, although with the insane action from last night, who knows where things will finish.
The fact that China is allowing its currency to (slightly) float has thrown everything into a tizzy. To me, China is principally interested in one country: China. I think their actions are going to be entirely directed toward their benefit (logically enough), so the entire world going into a orgiastic screams about how great its going to be for their own economy seems a bit overdone.
Shorting Singapore
Chart on FXI (Mike Paulenoff)
Let's notice that the iShares FTSE/Xinhua China 25 Index (NYSE: FXI) peaked at 46.66 in November 2009 and was in the confines of a coil-like corrective pattern into the series of May lows near 36.60/25. Since early May, the FXI has carved out a 5-week basing pattern which could be the second coordinate of a larger Double Bottom formation established in February 2010.
Right now, the combination of the base formations argues for higher prices near term that project into the 41.50 area, on the way to test the multi-month resistance line in the vicinity of 44.50. Furthermore, there appears to be a reliable 15-16 week trading day cycle that bottomed in mid-May, which is exerting positive influence on prices into the first week of July.
It is with the foregoing in mind, as well as because the FXI pattern appears to be ahead of, or leading, the major U.S. equity market indices, that we are long the China equity market in our model portfolio.
Originally published on MPTrader.com.
