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Well now, that did a lot, didn’t it.
Look, I’ve said it before and I’ll say it again. The Fed is the black hole at the center of the worldwide banking system. So long as it is withdrawing cash and the ECB and BoJ are either still adding or standing pat, their currencies will fall against the dollar. The reason is simple. There are constantly fewer dollars and the same or more yen and euros. So the dollar’s price will continue to rise in yen and euros. The idea that the BoJ can intervene and change that trend by selling USD and buying Yen is a pipedream.
Meanwhile, the EUR/USD looks set to go over another cliff as it heads for a measured move target of 0.90, based on its big top breakdown.
Here’s the very long term view on that.
Meanwhile back at the US market, I would say that the ES 24 hour S&P futures are taking aim at the 5 day cycle projection of 3700. But that would be wrong.
Because they’re already there for all intents and purposes. But don’t forget that measured move target of 3660 or so. That’s still out there.
Meanwhile, back at the big picture:
- Swing Trade Screens – Restrained Bearish Instincts September 20, 2022
- What a Whipsaw! Here’s How Big The Move Will Be September 19, 2022
- In the Goldrums September 16, 2022
- Fed Speeds Into Dead Man’s Curve, More Black Tuesdays Ahead September 15, 2022
- There Will Be More Black Tuesdays September 14, 2022
- Swing Trade Screens – Trailing Stops Did Their Job To Preserve Profits September 12, 2022
- Withholding Tax Collections Collapsed in August But BLS Data Won’t Show It September 2, 2022
- Warnings of August Liquidity Crash Come to Fruition – Here’s What to Do August 28, 2022
- Has Rule Number One Been Repealed? August 18, 2022
- “As Good as It Gets” Was Good While It Lasted August 6, 2022
- Treasury Confirms Supply Tsunami We Expected – Will Obliterate Everything August 3, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
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