Mauve Journal

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SOURCE: ZERO HEDGE .COM

hi ! send here [email protected]

Excellent job.

Thanks!

A thought and explanation about why people oppose austerity in Europe and what is wrong with their political system.. :

"In Euroland, the policy makers see expanded government and EU transfer money as the key drivers in development. They are not private sector minded (except in the sense of crony corporatism) and generally hostile to direct foreign investment.

This is related structually to the political system since EU transfer money and cheap credit is the principle means of European political parties for political patronage to remain in power. A stronger private sector means more independent voters. A greater representation of productive classes means less room for career politicians.

In Europe generally there is a firewall that blocks anyone from the private sector to enter into politics. The entire EU political leadership are career politicians, who have lived off government money all their lives. They have never ever created any value, but they have proved great value destroyers."

- The reason why people oppose austerity is while the govt forces austerity on its people, its the govt and these career politicians who is spending money, its their jobs that needs to be axed first to save real money.

Avicii - Levels:

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Hi Purple, I would be interested in following your journal, but apparently I am just a junior member as this is my first post so I do not yet have the privilege of PMing you. It would be awesome if you could fire me an email at [email protected] and I could send you my FB and private email.

Thanks a ton.

I have sent you an Email..

BTW I think one only needs more than 3 post count to start sending PMs here..

Screen Shot of this week's FA:

Dont miss troubled Italy in this chart in light gray, hidden behind Spain! Seems like Greece is just a tip of an iceberg if the Euro ship breaks apart.

http://i28.photobucket.com/albums/c2...2_balances.png

sorry, but dont u think u are just complicating things?

I use a simple laptop with minimum features, simple mt4 platform and I hardly read too much about fundamentals, my more concentration is just on charts.and I must say I am doing good.

I think it is impossible for any individual to really cope up with all the information available from world media.it will just confuse brain cells.

if ?

I read your post from my cellphone at first and I thought 'OMG did I missed typing that 'if' word..' Euro ship is headed for a break, I even updated it as my FB 'status' - 'Whats on my mind' for my friends back in year 2009 before all this even started.. but we still have to give other side a 'benefit of doubt'.

Each to his own, congratulations on your success and hope it carries on, everyone is entitled to his opinion.

I too read charts, plot support and resistances, use couple of indicators and candlesticks and enter and exit from market on that, but I cannot take trades based on just technical. I do FA because I think its a leading indicator and gives me an overall direction where the underlying currency in headed over the next few days/weeks to begin with and than come down to TA to decide the best entry and exit levels.

Its the fundamentals that make the market break trend lines, supports and Res.. and change the trend, if a breakout and trend change is not backed by fundamentals than its a fake breakout and many sole techies get caught on that.

There is nothing wrong in adding value to your analysis by doing that extra bit of FA if you know it and can do it, it just gives you more confidence on the technical trades you take, did George Soros sold Pound based on Technical? Or Warren Buffet (the guy who hoarded money all his life and had to donate it when he knew he can't take it with him)?

I think pure Technical trading is exhausting over a period of time, knowing the Fundamentals makes it easier to trade.

Action, Inaction and Reaction:

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SOURCE:

http://www.ft.com/cms/s/0/80094624-e...#ixzz1y2RSViYC

Austerity measures in Greece:

TAXATION

 

1. Taxes will increase by 2.32bn euros this year, with additional taxes of 3.38bn euros in 2012, 152m euros in 2013 and 699m euros in 2014.
2. A solidarity levy of between 1% and 5% of income will be levied on households to raise 1.38bn euros.
3. The tax-free threshold for income tax will be lowered from 12,000 to 8,000 euros.
4. There will be higher property taxes
5. VAT rates are to rise: the 19% rate will increase to 23%, 11% becomes 13%, and 5.5% will increase to 6.5%.
6. The VAT rate for restaurants and bars will rise to 23% from 13%.
7. Luxury levies will be introduced on yachts, pools and cars.
8. Some tax exemptions will be scrapped
9. Excise taxes on fuel, cigarettes and alcohol will rise by one third.
10. Special levies on profitable firms, high-value properties and people with high incomes will be introduced.

PUBLIC SECTOR CUTS

 

1. The public sector wage bill will be cut by 770m euros in 2011, 600m euros in 2012, 448m euros in 2013, 300m euros in 2014 and 71m euros in 2015.
2. Nominal public sector wages will be cut by 15%.
3. Wages of employees of state-owned enterprises will be cut by 30% and there will be a cap on wages and bonuses.
4. All temporary contracts for public sector workers will be terminated.
5. Only one in 10 civil servants retiring this year will be replaced and only one in 5 in coming years.

SPENDING CUTS

 

1. Defence spending will be cut by 200m euros in 2012, and by 333m euros each year from 2013 to 2015.
2. Health spending will be cut by 310m euros this year and a further 1.81bn euros in 2012-2015, mainly by lowering regulated prices for drugs.
3. Public investment will be cut by 850m euros this year.
4. Subsidies for local government will be reduced.
5. Education spending will be cut by closing or merging 1,976 schools.

CUTTING BENEFITS

 

1. Social security will be cut by 1.09bn euros this year, 1.28bn euros in 2012, 1.03bn euros in 2013, 1.01bn euros in 2014 and 700m euros in 2015.
2. There will be more means-testing and some benefits will be cut.
3. The government hopes to collect more social security contributions by cracking down on evasion and undeclared work.
4. The statutory retirement age will be raised to 65, 40 years of work will be needed for a full pension and benefits will be linked more closely to lifetime contributions.

PRIVATISATION

 

1. The government aims to raise 50bn euros from privatisations by 2015, including:
2. Selling stakes this year in the betting monopoly OPAP, the lender Hellenic Postbank, port operators Piraeus Port and Thessaloniki Port as well as Thessaloniki Water.
3. It has agreed to sell 10% of Hellenic Telecom to Deutsche Telekom for about 400m euros.
4. Next year, the government plans to sell stakes in Athens Water, refiner Hellenic Petroleum, electricity utility PPC, lender ATEbank as well as ports, airports, motorway concessions, state land and mining rights.
5. It plans further sales to raise 7bn euros in 2013, 13bn euros in 2014 and 15bn euros in 2015.

SOURCE:
http://www.bbc.co.uk/news/business-13940431?print=true

Greece Election Results:

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Source:

http://www.igraphics.gr/

June - Month ending levels:

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Gold Chart:

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That 'Buy Zone' line was marked at the beginning of last week, which we touched on Friday in last 4 hours of weekly trading and it bounced from there..

We have a Symmetrical Triangle on Gold which 'by books' is a continuation of existing trend, but is not completely true. Look for a false breakout or a confirmation first, or buy at dips from green line with proper MM.

FA Highlights of this week:

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Euro Daily Chart:

http://i28.photobucket.com/albums/c2...dpicture-3.png

Red line is the support I charted last week, at 161.8% Retracement of the Bull move on 28 and 29th of last month from the EU summit. It gave a 'weak' close above it. Euro is headed for 1.1950 as for now which is a strong support. I will be surprised if it gives a close above the second green line.

Since when is a fully engulfing bullish daily candle a "weak" close?

Bullish engulfing pattern was not confirmed with a higher level of volume. It looks more like a position/short covering and profit booking rather than a engulfing candle which usually occurs with established new long positions.