Tuesday, 26 February 2013
Tuesday 26Feb2013 - Currency Market Action!
The Canadian dollar is declining vs the US dollar and most likely will continue to weaken as the Canadian economy weakens and equity markets are entering a "Risk Off" period. Money will flow from Europe and Asia to the safety of the US dollar.
The Euro has completed its 7 month bear market rally and is now headed lower vs the US dollar.
It has clearly broken below the 7 month rising trendline.
It is time once again for Canadian investors to be long the US dollar and short the Euro.
The ETF to be long the US dollar and short the Euro is EUO trading on the NYSE.
EUO is the ProShares Ultra Short Euro ETF. It has 2X leverage. So if the Euro declines 5% vs the US dollar EUO will rise roughly 10%.
The Canadian dollar is declining vs the US dollar and most likely will continue to weaken as the Canadian economy weakens and equity markets are entering a "Risk Off" period. Money will flow from Europe and Asia to the safety of the US dollar.
The Euro has completed its 7 month bear market rally and is now headed lower vs the US dollar.
It has clearly broken below the 7 month rising trendline.
It is time once again for Canadian investors to be long the US dollar and short the Euro.
The ETF to be long the US dollar and short the Euro is EUO trading on the NYSE.
EUO is the ProShares Ultra Short Euro ETF. It has 2X leverage. So if the Euro declines 5% vs the US dollar EUO will rise roughly 10%.
Saturday, 23 February 2013
Friday, 22 February 2013
Friday 22Feb2013 - My 5 Cent's Worth Part!
We are now seeing the Canadian Dollar weakening vs the US dollar and heading toward key support levels. Considering Canada's weaking trade balance reflecting declining commodity prices and especially the $30-40 lower price differential between WTI oil and Canadian oil exports.
The following chart from Danielle Park's Juggling Dynamite web site.
We are now seeing the Canadian Dollar weakening vs the US dollar and heading toward key support levels. Considering Canada's weaking trade balance reflecting declining commodity prices and especially the $30-40 lower price differential between WTI oil and Canadian oil exports.
The following chart from Danielle Park's Juggling Dynamite web site.
It may now be time for a double play for Canadian investors/speculators to be long the US dollar and short the EURO currency. The following chart from todays EWI Financial Forecast shows the Euro breaking below the 6 month bear market rally trendline.
It may be once again time to go short the Euro vs US dollars. My favorite vehicle to do this is the ProShares Ultra Short Euro ETF (EUO-NYSE). A short term bounce up toward 1.33 would provide an ideal entry point to buy EUO.
Friday, 15 February 2013
Friday 15Feb2013 - What Next?
McHugh is looking at the formation of a developing and now nearing completion huge megsphone chart pattern for the Dow Jones Industrial Index. Once complete, perhaps in 2013, equity markets will enter a huge multiyear decline. Perhaps this time the catalyst will be the collapse of the huge debt bubbles in Europe, Japan and the United States.
From Robert McHugh's Dec2012 Safehaven Report.
"We believe stocks are making a final rally to a major top, a top for the centuries, and a Grand Supercycle degree Bear Market will start upon this rally's completion. There is a Jaws of Death pattern in stocks that has been forming for two decades. It is very close to completion, needing one more rally, a strong rally, that takes prices to the top of the pattern's upper boundary. Then, after reaching that height, a Bear Market for the ages will begin, something that will be greater than the Bear Market of 2007 to 2009, and greater than the Great Depression of the 1930's. Below we show this Jaws of Death stock market pattern."
McHugh is looking at the formation of a developing and now nearing completion huge megsphone chart pattern for the Dow Jones Industrial Index. Once complete, perhaps in 2013, equity markets will enter a huge multiyear decline. Perhaps this time the catalyst will be the collapse of the huge debt bubbles in Europe, Japan and the United States.
From Robert McHugh's Dec2012 Safehaven Report.
"We believe stocks are making a final rally to a major top, a top for the centuries, and a Grand Supercycle degree Bear Market will start upon this rally's completion. There is a Jaws of Death pattern in stocks that has been forming for two decades. It is very close to completion, needing one more rally, a strong rally, that takes prices to the top of the pattern's upper boundary. Then, after reaching that height, a Bear Market for the ages will begin, something that will be greater than the Bear Market of 2007 to 2009, and greater than the Great Depression of the 1930's. Below we show this Jaws of Death stock market pattern."
Monday, 4 February 2013
Monday 04Feb2013 - Currency Trades!
The Japanese Yen has been very weak vs the US dollar of late. The Bank of Japan and Japans new Prime Minister Shinzo Abe plan to flood the Japanese economy with cash in hopes of stimulating the economy out of a 20 year deflationary recession. Big money is now flowing out of Japan resulting in a weaking Yen vs the US dollar. Long term the Yen may have topped vs the US dollar. It appears to have based and we now may be entering an extended period of the Yen declining vs the US dollar.
There may be a good entry opportunity to go 2X short the Yen if we get a short term pullback for YCS to support at $48-49US. Jack Crooks of Blackswan Capital is not so sure there will be a pull back and suggests placing an On Stop Buy at $58.05 which is just above the Friday 01Feb high.
YCS is the ProShares UltraShort Yen ETF. It is an inverse ETF with double leverage. So when the Yen falls 1% against the US dollar, YCS rises roughly 2%.
The Japanese Yen has been very weak vs the US dollar of late. The Bank of Japan and Japans new Prime Minister Shinzo Abe plan to flood the Japanese economy with cash in hopes of stimulating the economy out of a 20 year deflationary recession. Big money is now flowing out of Japan resulting in a weaking Yen vs the US dollar. Long term the Yen may have topped vs the US dollar. It appears to have based and we now may be entering an extended period of the Yen declining vs the US dollar.
There may be a good entry opportunity to go 2X short the Yen if we get a short term pullback for YCS to support at $48-49US. Jack Crooks of Blackswan Capital is not so sure there will be a pull back and suggests placing an On Stop Buy at $58.05 which is just above the Friday 01Feb high.
YCS is the ProShares UltraShort Yen ETF. It is an inverse ETF with double leverage. So when the Yen falls 1% against the US dollar, YCS rises roughly 2%.
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