The Really Useless Thread

break this now and i will target 39 41 43 59 outside chance 83..

"what would you suggest the BOE do? "

Keep its independence and concentrate in what a CB (BOE) has to do. Managing inflation expectations and manage with extreme care monetary policy (e.g interest rates) when need it to stimulate growth.

The last few months it has lost north IMO and is solely focus on, as you very well explained, in "managing" debt. (a.k.a manipulating through artificial monetary channels public debt).

There is one and only key pre condition for effective monetary policy. That is credibility.

The gap and decoupling between those goals and short term technicalities is dangerously widening in the BOE. With unemployment numbers on the highs since the recession, with inflation on the rise (only major player with loose monetary policy that has lost control of it), public cuts taking it's toll short term (btw is good in the mid and long term), real economy coughing (nest quarter will probably hit negative growth putting us one step before technical double dip) and the world economy (especially the EZ for the UK) on fear mode. The BOE latest actions are not following economic rationality but the government agenda (which I insist is not necessarily bad in the mid term).

The very alarming issue that shows this decoupling it has been the QE2 failure so far to weaken the Pound. There is a clear risk of transferring all the "free money" directly to inflation without any of the positive effect of Easing which is a sign of weakness and lack of credibility in the monetary policy.In simple words, Stagflation and BOE is directly fueling the problems.

The second biggest BOE issue is that it is underestimating the EZ problems. BOE has acted (until recently) that is completely shielded from the EZ (more out of arrogance than reality) and the price is paying is even higher in the real economy. EZ is a mess but unemployment, inflation are under control but obviously growth is as bad/sluggish as the UK.

I don't like to be a doomer, but we are going back to the 90s. The mix of numbers and BOE policy are creating an alarming environment for a long and painful stagflation environment in the UK that will make the current EZ debt problems look like a small strip in the tiger...the worse part is most of it self-inflicted by the BOE losing its roll and independence...

What BOE should do. Simplifying the issue and avoiding the technical details (lets leave that for other conversation). Stop further QE2. Stop the openly dovish comments as the effectiveness of it is gone (i.e. watch and learn from SNB), put a hard stop on the undefined time and expectation of free money and low interest rates (speculators and big banks are riding the free money but the real economy is not getting a dime). Set a hard target undershooting inflation expectation to the down side (below 3.5%) to cut the spiral and put a preemptive target for rate hikes as early next year (0.75-1%).

Finally and more importantly, take a clear position decoupling from the Cameron and debt/deficit agenda (i.e. watch and learn from Trichet) and start focusing on what it has do controlling inflation and targeted and very well measured actions for promoting growth through monetary policy.

sisse

Last chart...then I'm making tracks.

Serious correlation of EU and AU of late. EU black...AU red...



Doesn't matter a shite which one you're trading. I know they often track together, but that is pretty tight these days.

Laters.

2 hours from nyse open,

leave Lars.. Leave

Goldman early, and awful...

3676 is the mid of the hourly spike down this morning, been tested a few times...

Youre my top spark this morning

no homo....















































get down....


sit...

loll, thanks..I think..

didn't break, but the bottom did,, so 3653 is the target.. and its a LL .. it may bounce first.
3640 is a support. so a bounce there can be a good unload. with a possible reload at 3668

those poor bastards

chart..

GS giving us a nice hand mate. Looking very good across the board..... ES 1155x WIDE open for NY open even with a chance to reload on the opening range/reports...

sisse

lol, they will have to get to work ripping people off her in order to get those end of year bonuses...

indeed, couldn't have happend to a nicer set of chaps, still looking for 3635ish...

i like 3476.... shorter term/3603/13.. expecting a bounce before or after 3653 not to exceed 3709 in height.

bounce helps insure red as long as we get to shorter term target making a newer low at 3653 min.. b/o indicated atm

10-4 on the low 3600's, for me 3616 is a quarter of last months range...below there I'll have to look, 3506 is a quarter of last weeks range..on bounces I like 3698, which is the mid of the bar the broke the MPP, it held the bounce earlier, looks like we need the AUD to give up some booty here to get the ball rolling..

News in 15 min and 20 seconds

how long now?

when are they gonna uprgade these servers, when?....