Howzit GU! Things are set for some movement... Unexpected big dollar move? Nope new S&P 500 high... so perhaps this matters? {image} Think what happens if there is significant movement of money between different equity markets... {image} Trading cards... {image} {image} GU Daily is that a BF? {image} LaterZ, Trade safe
Before I stare please correct me if I'm incorrect in any part.
China indeed is on the edge of collapse, housing market has been losing momentum since end of last year. China owns $1.2 trillion of US debt, Japan $0.9 trillion, Taiwan $150 billion, Hong Kong $122 billion. There is obviously Great Britain and Brazil, but large the largest condensation of US debt is in Asia. At the same time Asia - especially China (oh, such a surprise - over 1000 metric tons in 2013!) is the largest buyer of gold overtaking even India - conclusion - They know shit storm is coming (pardon my language) and its going to be big! Over 46% of US debt is held by foreign governments!!! US dollar its worthless, we even don't know how much of it has been printed over last years and what's worst its still reserve currency (WTF!). Obviously we all know why...
So what next? In November 2007 we had GBPUSD trading on level of 2.1161 and we went down the hill in summer 2008. Since then the highest we got was August 2009 - 1.7042. Currently we are way above 38.2 Fibonacci retracement from (taken from 2007 highs and 2009 lows) Breaking above 2009 highs would open way up and with GBP economy doing better than the rest of EU and China crisis round the corner, I see it very possible around summer time this year.
I think we may be into something much bigger than 2008 with 2 worlds biggest economies in trouble it wont be funny and much more bigger than 2008.
Buying pressure metals seems to looks like a good idea (gold, silver, copper) BUT not yet, probably in few weeks time, as currently we setting up for correction especially in gold and silver (my opinion). Swiss Franc would be other option I would consider.
Anyway I'm a day trader, but i guess its good idea to understand bigger picture.
All above its my personal opinion, not a recommendation and i may be wrong
Be safe!
