I got this website from a friend of mine. Very interesting.
http://www.theglobeandmail.com/globe-investor/markets/markets-blog/big-name-investors-pull-no-punches-on-qe2/article1775439/
This website bring us to a over all view of the economy.
This crisis we are going through here is the first ever. In human history, we have never meet this before. So there is no past record to base on. There is like no past year paper for us to know what will happen. The FED do not know what will happen, Obama do not know what will happen.
The new QE may work or may not work. The 1st QE essentially printing money to buy government bonds – was introduced during the worst days of the financial crisis, and largely credited with rescuing the global economy.
The QE2 is a cure-all for high unemployment, a depressed housing market and a U.S. stock market that is still well off its 2007 highs.
So are this all gimmick, ponzi etc...Well is for us to find out. Maybe the whole world economy is going to be worst off.Maybe is getting better.
Saturday, October 30, 2010
Friday, October 29, 2010
Funds in general
From fund managers, they have some take on the funds:
1. Asia and Emerging markets is going to benefit due to the expected liquidity injection and rising commodity prices.
2. China and India will not be adversely affected, they are expected to continue to grow in their own way
3. Japan and Europe may struggle.
4. Trade war and protectionalism is the risk and fear but it’s not expected to happen.
I would like to ask my friends that are in the semiconductor area, what is rare earth?? What material is that? 90% of rare earth is in China. What more happening is that rare earth is the new material, that will be use in semiconductor. Which will lead to a new generation of technology. China has 90% of this material, so sure they are going to benefit. Moreover, the future of technology will come from them.
1. Asia and Emerging markets is going to benefit due to the expected liquidity injection and rising commodity prices.
2. China and India will not be adversely affected, they are expected to continue to grow in their own way
3. Japan and Europe may struggle.
4. Trade war and protectionalism is the risk and fear but it’s not expected to happen.
I would like to ask my friends that are in the semiconductor area, what is rare earth?? What material is that? 90% of rare earth is in China. What more happening is that rare earth is the new material, that will be use in semiconductor. Which will lead to a new generation of technology. China has 90% of this material, so sure they are going to benefit. Moreover, the future of technology will come from them.
Mkt update for this week and coming
Hey Folk
Stock market for this week
Very exciting week. We have most of asia market down this week. STI, Hang Seng down. We have in the US, Dow, Nasdaq and s&P almost flat as of thur.
US dollar & crude
US dollar is bouncing up and down with the crude oil having the same behaviour too.
So how are they doing??
Right now we see something interesting about the Stock market and the US dollar. It De-sync or the right word to use it is it does not synchronizes. The stock market is moving along with the crude oil now.They are moving together. The crude probably is going to test 80 per barrel today.So if that happen, Dow will go down to about 11000 or below. Which will bring the asia market down when we open on monday.
One Sign tell us that, that is STI went up today. But notice that there are more loser than gainer. Also the banks stocks 2 down and 1 up. The property counter that are in the STI are also down.With minor gain in the commodities stocks.So this sign tell alot.
Probably the drop is coming.But again, i will be dead wrong like how i thought it will be in Oct.I still uses the same technical analysis to look at them. I am still staying sideline.
Next up on some funds report by various funds managers......
Stock market for this week
Very exciting week. We have most of asia market down this week. STI, Hang Seng down. We have in the US, Dow, Nasdaq and s&P almost flat as of thur.
US dollar & crude
US dollar is bouncing up and down with the crude oil having the same behaviour too.
So how are they doing??
Right now we see something interesting about the Stock market and the US dollar. It De-sync or the right word to use it is it does not synchronizes. The stock market is moving along with the crude oil now.They are moving together. The crude probably is going to test 80 per barrel today.So if that happen, Dow will go down to about 11000 or below. Which will bring the asia market down when we open on monday.
One Sign tell us that, that is STI went up today. But notice that there are more loser than gainer. Also the banks stocks 2 down and 1 up. The property counter that are in the STI are also down.With minor gain in the commodities stocks.So this sign tell alot.
Probably the drop is coming.But again, i will be dead wrong like how i thought it will be in Oct.I still uses the same technical analysis to look at them. I am still staying sideline.
Next up on some funds report by various funds managers......
Tuesday, October 26, 2010
Major move will lead the way
I am waiting for some major move. Observe the chart and you notice some very interesting fact, small movement be get big movement, big movement be get small movement.
Gold is going south.Most stock indices are having small movement so far.Bonds too are trading in a range.
Gold is going south.Most stock indices are having small movement so far.Bonds too are trading in a range.
Will a drop come??
Hey folk
been pretty busy this few days. So where the market is heading into. Well initial study show me that the market is going up. Have no doubt about it, it is moving higher n higher. But i take a closer look at the market, commodities, Dollar index, Bond and Gold and i found out that is abit confuse where the market is heading. That why i been staying in the sideline for sometime.
However, if there is a drop, then it time for accumulation to start and if there is a breakout towards the upside, then buying in would also be a good idea. Dont ever think or guess or put your opinion into the market. You think the market is high. So you wish it will drop.But if the market will to move up another 10% higher.Today value is lower than the 10% upmove.Which mean to say now is the low and the high is the near future.
been pretty busy this few days. So where the market is heading into. Well initial study show me that the market is going up. Have no doubt about it, it is moving higher n higher. But i take a closer look at the market, commodities, Dollar index, Bond and Gold and i found out that is abit confuse where the market is heading. That why i been staying in the sideline for sometime.
However, if there is a drop, then it time for accumulation to start and if there is a breakout towards the upside, then buying in would also be a good idea. Dont ever think or guess or put your opinion into the market. You think the market is high. So you wish it will drop.But if the market will to move up another 10% higher.Today value is lower than the 10% upmove.Which mean to say now is the low and the high is the near future.
Thursday, October 21, 2010
Apology
Hey folk
I got to apologise on the forecast that the market is going to drop in Oct.
Nothing is ever 100% in investing and trading.We are approaching to the end of Oct and not a week drop.There seems to be a broadbase buying everytime the market drop.
The 5 weeks advance this time round fail me as well as the 4 year cycle.
Further study is made and technical analysis shows both buy and short signal. There are signs that show the market is going to drop and signs show that the market is going up higher.
Let us see a few more days on the market development.If the market dont drop, then we shall follow the market and be a buyer. If the market eventually turn south then we shall be a seller. Let not fight against the market with our opinion or feeling that Ohhh the market is up so much, it time to drop.If a drop wont come it wont come. As it was like in 2006 thru 2007.
I would also email my beloved clients one stock for medium term investment. Probably 200% to 400% profit can be made. Medium term is about 3 to 5 years.
Nothing is ever 100%, so put your stops in.Dont get emotion into trading or investing as this will cause you to be very irrational and believe in your own way. I do not have any method that is 100% at all cause if i do then that will be the last trade of my life.
I got to apologise on the forecast that the market is going to drop in Oct.
Nothing is ever 100% in investing and trading.We are approaching to the end of Oct and not a week drop.There seems to be a broadbase buying everytime the market drop.
The 5 weeks advance this time round fail me as well as the 4 year cycle.
Further study is made and technical analysis shows both buy and short signal. There are signs that show the market is going to drop and signs show that the market is going up higher.
Let us see a few more days on the market development.If the market dont drop, then we shall follow the market and be a buyer. If the market eventually turn south then we shall be a seller. Let not fight against the market with our opinion or feeling that Ohhh the market is up so much, it time to drop.If a drop wont come it wont come. As it was like in 2006 thru 2007.
I would also email my beloved clients one stock for medium term investment. Probably 200% to 400% profit can be made. Medium term is about 3 to 5 years.
Nothing is ever 100%, so put your stops in.Dont get emotion into trading or investing as this will cause you to be very irrational and believe in your own way. I do not have any method that is 100% at all cause if i do then that will be the last trade of my life.
Tuesday, October 19, 2010
US dollar and S&P500 relationship
This is the UUP- dollar bullish index and the S&P500
So here is the Dollar that play the trick again.Dollar down Stock up. Inflationary rally, which cost commodities price to rally which mean goods price will be more expensive in the future.Notice something on the chart. The market is moving lesser as the dollar fall. It has a very strong support level for the dollar. So it may hit that support line and do a rally.
Monday, October 18, 2010
i m wrong
ooops i m wrong abt today mkt...the crude when up and the US indices too as of now...
nothing is 100% so also trade with stops
nothing is 100% so also trade with stops
Saturday, October 16, 2010
MAPLETREE INDUSTRY TRUST IPO
Good morning
OMGIF = omg is Friday. To new trader out there who just started trading or learning how to trade, there is a symptoms that will haunt u. you wont TGIF, but u will OMGIF. you dont want Friday to come, because the next day the market is close and you cant trade, the next next day unfortunately is Sunday and the market is close again.This 2 days for you will be somewhat boring and no $$ can be made.That is why the symptoms comes in. However, i urge you guys not to rush, stay patient stay calm. This 2 days of rest is to do ample research for the following week to come.So if you are serious in this business, this is a ongoing process and is not going to be easy.
MAPLETREE INDUSTRY TRUST IPO
Alright alot of people have ask me about mapletree industry trust IPO. It launching at 0.93 / lot. It is a property trust, which owns factories and other industrial properties in Singapore.
chk out this site http://sg.news.yahoo.com/rtrs/20101011/tap-mapletree-ipo-c3bb44c.html
It has many interest from institution investor. It would be a good dividend stock as REIT is more of a dividend than capital appreciation. It let you have property in your portfolio without being the landlord.So have a long term horizon on this will be good to have a effective return.
For new traders or investor, please note that for IPO balloting, you might not get the number of stock that you want. As in you apply 10lots, maybe you get 1 lot.
So if you wish to sell it out quick, do you maths right.
For buy + sell fee = approx $50. So those who get 1 lot, to earn $50 the stock have to trade at $1.04 which is a 11% upmove.So get it right.Pls dont try to buy the stock from the market if you miss the IPO. The institution will love you alot, as you will be the person whom they sell you the stock and get cash from you.
So far there are 21 IPO this year of which there are 7 stocks that are trading higher than their IPO price and 14 trading lower than IPO price.
Average gain/lose in term of % from IPO price is -2.33%.
These are purely my own analysis, opinion, calculation. It is not a recommendation for any action to be taken.
OMGIF = omg is Friday. To new trader out there who just started trading or learning how to trade, there is a symptoms that will haunt u. you wont TGIF, but u will OMGIF. you dont want Friday to come, because the next day the market is close and you cant trade, the next next day unfortunately is Sunday and the market is close again.This 2 days for you will be somewhat boring and no $$ can be made.That is why the symptoms comes in. However, i urge you guys not to rush, stay patient stay calm. This 2 days of rest is to do ample research for the following week to come.So if you are serious in this business, this is a ongoing process and is not going to be easy.
MAPLETREE INDUSTRY TRUST IPO
Alright alot of people have ask me about mapletree industry trust IPO. It launching at 0.93 / lot. It is a property trust, which owns factories and other industrial properties in Singapore.
chk out this site http://sg.news.yahoo.com/rtrs/20101011/tap-mapletree-ipo-c3bb44c.html
It has many interest from institution investor. It would be a good dividend stock as REIT is more of a dividend than capital appreciation. It let you have property in your portfolio without being the landlord.So have a long term horizon on this will be good to have a effective return.
For new traders or investor, please note that for IPO balloting, you might not get the number of stock that you want. As in you apply 10lots, maybe you get 1 lot.
So if you wish to sell it out quick, do you maths right.
For buy + sell fee = approx $50. So those who get 1 lot, to earn $50 the stock have to trade at $1.04 which is a 11% upmove.So get it right.Pls dont try to buy the stock from the market if you miss the IPO. The institution will love you alot, as you will be the person whom they sell you the stock and get cash from you.
So far there are 21 IPO this year of which there are 7 stocks that are trading higher than their IPO price and 14 trading lower than IPO price.
Average gain/lose in term of % from IPO price is -2.33%.
These are purely my own analysis, opinion, calculation. It is not a recommendation for any action to be taken.
Friday, October 15, 2010
Moving up mkt... buy??
Like my previous post said that be long end of Oct. There are people writing to me and ask me about you said is moving up but why are you not long, why wait till end of Oct. The analsysis is like this: The market seems strong. for the rest of the week or 1 week it gng to go up. But this are the last wave of people coming into the market. Which mean to say, people are buying higher and try to sell higher.I am not a trader that like to risk that. I prefer to buy at the low and sell high.
Unless you think this is worth the risk if not then dont do.I am a rather cautious trader that prefer to buy low sell high or sell high buy low.
So my take is still be long by end of Oct,the market is moving all they want for the pass few days, but i am totally not very active in the market these few days.
Unless you think this is worth the risk if not then dont do.I am a rather cautious trader that prefer to buy low sell high or sell high buy low.
So my take is still be long by end of Oct,the market is moving all they want for the pass few days, but i am totally not very active in the market these few days.
Wednesday, October 13, 2010
Rally is in the picture
Look at the market rally today.
I think the up move is going to stay. From Technical analysis point of view, it is going to stay probably for a good 1-2weeks. Mid term election, govt stimulus, continue to let the dollar continue to go lower, the market will get prop up or some say inflationary rally.
All the major indices and Euro currency index are trading in a parallel channel. The US indices have go through a triple top and move right through.
However my analysis of being long by end of Oct still stay. I believe a drop is near. But again, i can be real wrong about all this.
I think the up move is going to stay. From Technical analysis point of view, it is going to stay probably for a good 1-2weeks. Mid term election, govt stimulus, continue to let the dollar continue to go lower, the market will get prop up or some say inflationary rally.
All the major indices and Euro currency index are trading in a parallel channel. The US indices have go through a triple top and move right through.
However my analysis of being long by end of Oct still stay. I believe a drop is near. But again, i can be real wrong about all this.
Tuesday, October 12, 2010
US dollar and the market 5 min intraday chart
US dollar index
S&P500
This is the 5 min chart of the dollar and the SnP500. Look at that move. When the dollar goes up the market come down, when the dollar goes down the market come up.
Right now we are seeing that the dollar are getting weaker, and look at the up move on the 5 min chart of the SnP500.
S&P500
This is the 5 min chart of the dollar and the SnP500. Look at that move. When the dollar goes up the market come down, when the dollar goes down the market come up.
Right now we are seeing that the dollar are getting weaker, and look at the up move on the 5 min chart of the SnP500.
Market for today
Resilient yen, China raise reserve requirement to drain cash from the economy send asia stock down
The stock market is under pressure to come down. As you can see in the US market yesterday. Yesterday is Colombus day. The bank are having holiday. So the trading volume is light.The market move side ways for most part of the day and it went down and then recover at 4pm EST. If the market is really going up, this kind of scenario rarely happen. It would move up gradually.And trading volume is thin, which mean that anyone that have a hugh capital can manipulate the prices to go up or down.
Now you are seeing the market trending lower, due to earning report coming in and FED minutes at 2pm EST. Investor are cautious about it thus stay at the sideline. The main reason is still the Dollar.When the Dollar is up, the market will come down, when the Dollar is down the market will go up. Today we see the Dollar moving higher. So you too witness Gold is down, commodities like crude is down.
My forecast say the same.(as posted as my previous posting)
Stay tune
The stock market is under pressure to come down. As you can see in the US market yesterday. Yesterday is Colombus day. The bank are having holiday. So the trading volume is light.The market move side ways for most part of the day and it went down and then recover at 4pm EST. If the market is really going up, this kind of scenario rarely happen. It would move up gradually.And trading volume is thin, which mean that anyone that have a hugh capital can manipulate the prices to go up or down.
Now you are seeing the market trending lower, due to earning report coming in and FED minutes at 2pm EST. Investor are cautious about it thus stay at the sideline. The main reason is still the Dollar.When the Dollar is up, the market will come down, when the Dollar is down the market will go up. Today we see the Dollar moving higher. So you too witness Gold is down, commodities like crude is down.
My forecast say the same.(as posted as my previous posting)
Stay tune
Mkt will trade lower
Congrat to those who short oil last nite.
The market is weak. It has difficulty moving higher.
The market is weak. It has difficulty moving higher.
Monday, October 11, 2010
Oil, Stock
My technical analysis tell me that crude oil is going to fall and stock as well.
Stock market will fall to end of Oct. So be long on end of Oct. It may move up all the way to next yr May. Not continuously as in day after day going up ...but it will move up till May 2011.
Stock market will fall to end of Oct. So be long on end of Oct. It may move up all the way to next yr May. Not continuously as in day after day going up ...but it will move up till May 2011.
Friday, October 8, 2010
Thursday, October 7, 2010
GLD
Hey Folk
As i send out my email to all you people out there. As i have said that USD down is over done, look at the gold price...it drop by 15 bucks a 1% drop
As i send out my email to all you people out there. As i have said that USD down is over done, look at the gold price...it drop by 15 bucks a 1% drop
What is happening in the market place
Global
The 1st half of the year, we witness EU region is hit badly by what could happen to Greece. and some of the European countries. This hit hard on Euro currency. On 2nd half of the year, these news disappear. Then the US will be introducing a series of stimulus measure to boost their employment rate and President Obama have also wanted to increase the export of US by 2X the current level. Obama have pull out troops from Iraq which also gain alot of support from his people.
In order to capture the votes of the unemployment, Obama and the Democratic Party now have to blame the cheap RMB for the US high unemployment.
RMB will become the long term political tussle between China and the US. However the actual fact is that when US exerted pressure on the issue, RMB would appreciate to record high, amd when US relented, RMB would weaken. China the number 2 economy in the world have bought USD 900 Billion of T bond from the US. In the effort of re-valute their portfolio, China have also buy more into Euro and Yen in their foreign reserve and sell USD. So that if the USD devalue against the RMB, China would not suffer a great lose.
Currency
USD have been depreciating as much as 10% since Jun 10. Imagine you have a 10 USD with you in Jun and right now it only worth 9 USD. Conversely, it is when the USD go weak that the commodities and the stock market went up. It attract foreign investors to buy their currency and invest in the US. This also helps to boost the country export. As most commodities are deal in USD, a cheaper USD would mean buying more of the commodities and also mean the supplier have to increase the price of the commodities to earn the equivalent of what they earn when the USD is stronger. Having said so the USD will remain weak as stimulus measure will be introduce and the want to increase export in the US.
China economy is growing tremendously but they do have their structural problem within their country. Premier Wen Jia Bao have stated that China have 4 stimulus that are going in the country 1 Massive public spending, 2 Adjusting and upgrading of industrial structure, 3 Scientific and technology to fuel everlasting growth 4 Improved social safety net. These measures would further enhance the growth of China economy. However, RMB would not appreciate in value overnight or in any shortterm. RMB would appreciate in the long run. China will bear in mind hw the Japanese suffer since they let Yen appreciate and in the long run if China is willing, RMB denominated treasury bills will become an important reserve currency of all the countries in the world.
Commodities
The CRB index (commodities research bureau index) have move up quite alot and near to the pre crisis level. The last time the CRB index have a great move up to the level is when Oil or the Energies are involved. For the past few months, you observed that the energies have not really taken part in this up move yet. Those commodities that have the major up move are the metal like gold, silver,copper, platinum, palladium, the grains like wheat, soy bean, corn, the soft like sugar, coffee, orange juice. Energy have not taken part in this up move as of a few months back. Right now you are seeing crude oil moving up about 10% since the end of Sept. Commodities price have still many room to grow as the world economy is growing.
Stock markets
The market for the past 2 years is driven by the USD. When USD is down the market is up and when the USD is up the market is down. Crude oil price too drive the stock market. However, we are seeing a over done in these market recently. USD is down too much which drive the stock and the commodities market up too high.(in my opinion) Thus we should see a correction soon. Rocktober is the beginning of the 4th Q and also the earning report of the 3rd Q, thus be cautious when trading. As I am typing these email, the USD is down again and we do not see a similar reaction on the stock market. Dow is in red now. This could mean that, it has been over done and it not as effective anymore or even a reversal is near.
From technical point of view, the indices have successfully go through the Head test in the head and shoulder pattern. However, a double top is near.My 4 years cycle have hint that a market drop is round the corner and my 5 weeks advance have predict that too. And what happen after the drop?? The market would rally 10% till the end of the year.
This is my own opinion only and do not use as an advise to execute any trade. My forecast can be totally wrong as past result do not represent future performance. Having said that, i have traded the market for 4 years and running.
The 1st half of the year, we witness EU region is hit badly by what could happen to Greece. and some of the European countries. This hit hard on Euro currency. On 2nd half of the year, these news disappear. Then the US will be introducing a series of stimulus measure to boost their employment rate and President Obama have also wanted to increase the export of US by 2X the current level. Obama have pull out troops from Iraq which also gain alot of support from his people.
In order to capture the votes of the unemployment, Obama and the Democratic Party now have to blame the cheap RMB for the US high unemployment.
RMB will become the long term political tussle between China and the US. However the actual fact is that when US exerted pressure on the issue, RMB would appreciate to record high, amd when US relented, RMB would weaken. China the number 2 economy in the world have bought USD 900 Billion of T bond from the US. In the effort of re-valute their portfolio, China have also buy more into Euro and Yen in their foreign reserve and sell USD. So that if the USD devalue against the RMB, China would not suffer a great lose.
Currency
USD have been depreciating as much as 10% since Jun 10. Imagine you have a 10 USD with you in Jun and right now it only worth 9 USD. Conversely, it is when the USD go weak that the commodities and the stock market went up. It attract foreign investors to buy their currency and invest in the US. This also helps to boost the country export. As most commodities are deal in USD, a cheaper USD would mean buying more of the commodities and also mean the supplier have to increase the price of the commodities to earn the equivalent of what they earn when the USD is stronger. Having said so the USD will remain weak as stimulus measure will be introduce and the want to increase export in the US.
China economy is growing tremendously but they do have their structural problem within their country. Premier Wen Jia Bao have stated that China have 4 stimulus that are going in the country 1 Massive public spending, 2 Adjusting and upgrading of industrial structure, 3 Scientific and technology to fuel everlasting growth 4 Improved social safety net. These measures would further enhance the growth of China economy. However, RMB would not appreciate in value overnight or in any shortterm. RMB would appreciate in the long run. China will bear in mind hw the Japanese suffer since they let Yen appreciate and in the long run if China is willing, RMB denominated treasury bills will become an important reserve currency of all the countries in the world.
Commodities
The CRB index (commodities research bureau index) have move up quite alot and near to the pre crisis level. The last time the CRB index have a great move up to the level is when Oil or the Energies are involved. For the past few months, you observed that the energies have not really taken part in this up move yet. Those commodities that have the major up move are the metal like gold, silver,copper, platinum, palladium, the grains like wheat, soy bean, corn, the soft like sugar, coffee, orange juice. Energy have not taken part in this up move as of a few months back. Right now you are seeing crude oil moving up about 10% since the end of Sept. Commodities price have still many room to grow as the world economy is growing.
Stock markets
The market for the past 2 years is driven by the USD. When USD is down the market is up and when the USD is up the market is down. Crude oil price too drive the stock market. However, we are seeing a over done in these market recently. USD is down too much which drive the stock and the commodities market up too high.(in my opinion) Thus we should see a correction soon. Rocktober is the beginning of the 4th Q and also the earning report of the 3rd Q, thus be cautious when trading. As I am typing these email, the USD is down again and we do not see a similar reaction on the stock market. Dow is in red now. This could mean that, it has been over done and it not as effective anymore or even a reversal is near.
From technical point of view, the indices have successfully go through the Head test in the head and shoulder pattern. However, a double top is near.My 4 years cycle have hint that a market drop is round the corner and my 5 weeks advance have predict that too. And what happen after the drop?? The market would rally 10% till the end of the year.
This is my own opinion only and do not use as an advise to execute any trade. My forecast can be totally wrong as past result do not represent future performance. Having said that, i have traded the market for 4 years and running.
Wednesday, October 6, 2010
MKT going up up n up
The market is going up. Let not doubt abt it and follow what the market tell us to do.
Mkt update
The market for the past couple of weeks have been up down up down. A flat top have set in most indices except STI, HSI.(A flat top produce market drop). In the previous post i mention about CRB index sky rocket. It is push by the sugar,coffee,orange juice,wheat,corn, soy bean,crude,gold,copper up and etc except oil and the meat. This week we see oil starting to rally. The USD is also kept down by the FED. A cheaper dollar will also make commodities and stock price to rally.
So what's up??
The market is always been prop up when the dollar is crush. The dollar has lost 10% of it value since June 2010.Imagine you have 10 USD in June and it actually worth 9 USD in Oct.The FED are the ones that control the dollar and they have a POMO programme. POMO = permanent open market operation. The operation come into the market every other day. The purpose of it is to make sure the market do not come down (prop up the market). Another factor is prop up he market is to keep the USD low. Obama has wanted to increase the export of the nation by 2 X. To achieve that, one of the ways is to keep the USD low.
However, a currency that keep inflate is not good for the economy for the long run either. So we shall see the development of the market as it unfold.
From Technical point of view, the market is really under some pressure to come down.But nothing is ever 100%.
So what's up??
The market is always been prop up when the dollar is crush. The dollar has lost 10% of it value since June 2010.Imagine you have 10 USD in June and it actually worth 9 USD in Oct.The FED are the ones that control the dollar and they have a POMO programme. POMO = permanent open market operation. The operation come into the market every other day. The purpose of it is to make sure the market do not come down (prop up the market). Another factor is prop up he market is to keep the USD low. Obama has wanted to increase the export of the nation by 2 X. To achieve that, one of the ways is to keep the USD low.
However, a currency that keep inflate is not good for the economy for the long run either. So we shall see the development of the market as it unfold.
From Technical point of view, the market is really under some pressure to come down.But nothing is ever 100%.
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