EurAnalysis

Is this really the answer?

http://dailyreckoning.com/goldman-to-the-rescue/

I ask again: is this really the answer?

http://www.independent.co.uk/news/bu...e-6264091.html

I was glad to see that this was reported in at least one of the more mainstream papers. If you take a step back and just think about what has gone on in Europe even in just the last 6 months it is staggering.

My weekly EU outlook, everything is on the chart, have a look.

Cheers

S.

The European Central Bank has secretly imposed a weekly limit of about 20 billion euros ($27 billion) on its euro zone sovereign bond-buying program, according to a report in Germany's Frankfurter Allgemeine Zeitung published on Friday.



http://www.cnbc.com/id/45352305

Monti won the vote by 556 to 61 after a similar comfortable vote in the upper house on Thursday.His unelected government of technocrats is now fully empowered.
Monti, who also holds the economy portfolio, has outlined to parliament a broad raft of painful reforms to shore up public finances and increase competitiveness after a decade of stagnant growth.


http://www.cnbc.com/id/45354926

New EURUSD chart

http://www.reuters.com/article/2011/...2F+Top+News%29



Greece's fractious political parties on Saturday to give written guarantees that they will back austerity measures under a bailout deal aimed at saving the country from financial ruin.


The leader of conservative New Democracy -- one of three parties in the new national unity government of technocrat Prime Minister Lucas Papademos -- has stirred dismay in the EU by refusing to sign any pledge, saying his word is enough.
ADD: Bed time

The lesson for all the parliaments of Europe is that they can do what they like as long as the power behind the throne likes it.

There are a lot of remarkable things happening in Europe. But the most remarkable thing is the weakening of the sovereign state and national parliament. Something is behind this, and it is not democracy or a dream.

Exactly what is this something? It is not 100% clear. But it is 100% clear that they are the best organized and the most competent force in Europe today. Perhaps it is Goldman Sachs...

Print or Perish

Europe is again at center stage. At conferences and meetings and in private conversations, it is the topic of the hour. I have thought a lot this week about Europe and its impact, so once again we delve into what is an evolving situation. This time, we look at possible impacts on the markets, as we ponder the questions, “Are we back to 2008?” and “Is there a Lehman in our future?” and I try once again to keep from making this a book-length letter. And I close with some brief thoughts I brought back from DC on the Super Committee and the deficit cuts. read more...

Eurozone debt web: Who owes what to whom?

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Pre dawn on a Sunday morning.

Took a long walk at the beach Friday afternoon. Went out Saturday, dug a bunch of clams made some clam chowder for dinner.
Got a good nights sleep.

So here we are.
Will make this post as an effort to interject some perspective before the coming weeks circus puts on a bigger then three ring show.

Science Ficition, that is the world we live in.
On one hand we have the financial markets and the way society is kept whole. There is the central cartel of central bankers who have the power to print or not to print. That is the question. If debt becomes too onerous, CB's will print rather then trigger massive unemployment and social unrest. Governments will act to preserve domestic tranquility.
Keep the masses under control and prevent disintegration.That is the prime objective.

Then we have the forces of the real world market. The rest of humanity has to accept the paper currency with all the pretty pictures as if it was real. Governments set the game rules, enforced by regulations, backed by police state powers.

So far the CB's have been able to contain real world economic forces, the meltdown has occured but only on paper. True unemployment remains high but it has not reached catastrophic proportions to trigger mass social unrest that is uncontainable.

I do think that Price action is supportive of that view. Instead of really huge and violent currency moves or equity moves we have volatility but no sustained directional move. Just a slow attrition of price.

Marc Faber has suggested a portfolio of 25% Gold, 25% Real Estate, 25% equities and 25% Cash. I would venture that, that, is a starting point that the individual may tweek depending upon how one views the ultimate outcome.

Everything is calm until the markets lose confidence that the CB's are bigger then the market and real world economic forces are actually in control.

Anyone who challenges the authorities and dares to publish a real world analysis. Jefferies comes to mind, the call for a recapitalization of Europes Banks was not happily accepted, so a few leaks here and there and all of a sudden Jefferies is now the object of financial scrutiny.
Mind control and propaganda do have a sinister side.

Where does that leave the Trader. My view remains that we are playing the money game. I did not suggest for a moment that we are playing the wealth game, for wealth is in the eye of the beholder, but we are playing the money game. The money game has as its objective to amass as much paper currency, in as short a time as possible.

All of the possible economic scenario's must be tempered by whether or not they contribute to ones increased holdings of paper currency.

We shall see if the digital empires are sustainable or the whole thing comes down in a massive bust of panic.

The only true guide is Price, and in my view remains price action. So as a Trader PA trumps everything else. In the money game it is not about having ones scenario come true, it is about gaining paper money by being on the right side of a move.

Hopefully this is a helpful perspective. It is not intended as some cynical view from a cycnical person. But the movie "The Matrix" does keep coming to mind and it is an apt Science Ficition/True vision of financial markets that we encounter on a daily basis.

And we are off to the coming week.

I particularly like the last paragraph

forget last time lets move on.


i wouldnt do anything just yet technically on the euro maybe a tiny long scalp.. NO!. must resist long...


okay seriously speaking price based on my master chart should retrace as per what i think to the red ellipse to the 45 angle. 45 has a tendency to be a magnet angular trendline either bearish or bullish it has a sort of magnet to the vibrato of the market.

we have bullish divergence so far on h4

so i say im going long till 3600

or if there is some other setups ill scalp the market or see possible bearish continuation.

I must say it would be great to see 1.36 again or possibly even a bit higher. If we do see it, I will be smiling as I place my short.

Let's see what Monday brings. I suspect Asia may take us higher but then it will probably be flat.

No charts from me for now. I will post one when I post my market update on Monday morning.

I hope everyone is having a great weekend.

Buma welcome back. You're a great guy

75 hours from market open should be very imperative.

if we look at mirror cycles last swing down was 75 and we might get a similar treatment in 75 hours too.

oh shucks im blushing already pip


USDX bearish divergence, DAX bullish divergence.

i really think id hold my massive shorts first dax just passed on mhy bull cycle.

Rising wedge on daily usdx . Pending short on eurusd at 1.3650.

yep. that is i believe going to drop below the compressed period to the low of the demand zones

im seeing possible used up demand therefore a drop to ur blue line should be possible. i do not know the formula but i know that (i think) 50% OF dx is made from eur usd rates.