DislikedSO MANY PEOPLE TALK OF MONEY FLOW AS AN ABSTRACT UN IDENTIFYABLE NUMBER....
I HAVE JUST SEEN THIS ... NOT POSTED PREVIOUSLY.
JUST NEED TO DIGEST
SO HOW DO WE USE IT IF AT ALL?
HELP? http://online.wsj.com/mdc/public/pag...moneyflow.htmlIgnored
At this EXACT MOMENT with EUR/USD at 1.2916, I do not know nor do I care which way it goes. If I see it move up towards the high of the day at 1.29308 I will consider going short since I and only myself has made the call that the odds favor it going down. The odds in my view are the equity markets which more likely are rather than not going to reverse direction.
If this happens then it is 99% sure that EUR/USD will go down.
Risk Off or Risk On. The movement of the money from Equities to US Bonds and into the US Dollar.
Use a Trade Plan with excellent Risk Management and have control of your emotions such as fear, greed and EGO !!!
CurrencyMan:
As we can all see now EUR/USD is trading at 1.2928 and the NEW HIGH is now 1.29345.
The Dow Futures are UP at 51 now and Oil is Up also. ($92.80 US)
We have Risk On and NOW Gold is UP as well at $1785 US. (Up $1.70 US)
USD/JPY is at 78.13 and EUR/JPY is at 1.0101
If EUR/JPY goes from 1.0101 to say 1.0050 (50 PIPS Down) it will bring EUR/USD down with it most of the time.
I just shorted one Position of EUR/USD at 1.29276 with my STOP LOSS at 1.2975...
The Yield on the 2 Year US Bonds is .24% and the 10 Year Us Bonds are now at 1.65% with the spread at 141 Basis Points. We can see that MONEY HAS FLOWED OUT of the 10 Year US Bonds as the Yield went from 1.64% earlier this morning to 1.65% now. That means the US Bond sold off and thus the Yield goes up. Did some of that MONEY go to buy Gold which now is UP and before was down $3.00 ? Did some of it go into EUR/USD as it moved up ?
If you have any questions on this topic please feel free to post them.
Thank You ...