Passover, Full Moon Eclipse and Nose Bleeding Markets – EURUSD
The Jewish Pesach (Passover) started yesterday along with the full moon (eclipse) and Janet Yellen gave us nosebleed by not mentioning anything about monetary policy in her speech, leaving the market LOST and CONFUSED, so much for WSJ calling it a “conscious uncoupling”.
Take a look at the S&P 500 intraday chart. It looks like a mirror !, apparently saved by Yahoo and tech recovery but the Fed has never been more powerful, I would say.
This week is special too as it also happens to be the anniversary of the sinking of the Titanic, the Hillsborough (Liverpool) disaster which I watched live on TV as a child (because I was a Forest fan), the Boston marathon bombing last year and lets not forget the big one – Passover and the Jewish exodus.
Quite a few disasters to think about on day 10 of flu outbreak without antibiotics for me and I get grumpy when I think about QE and easy markets and all the equity guys waiting on the side for the rally to continue except that penny stocks are still not doing so well because their motherships are not buying them out.
I am uneasy, not because I am sick but because I am drug free.
There are powerful forces brewing in the marketplace and for once, the world realises their subordination to the big 3 – BoJ, ECB and the Fed, everything else inconsequential including politicians who have handed control of the economy to the central bankers.
Timing is one of the worst enemies of a trader and also the fengshui master, according to Dr Peh, our in house consultant.
But if I were to pick the biggest trade out there, it would be the EUR – mainly because it is probably the only currency pair that cannot be manipulated for all the cross trades out there.
EUR (and a bit of JPY) is the opposing scale to the USD and majority of books are resting in either of the two, much as we like to imagine loads of CNY, Gold or rare stamps and paintings and wine.
For all the threats of European QE and all the analyst reports calling for a sell on the EUR, Ukraine disintegrating and Italian banks under attack again, I believe the Passover effect will be one of emancipation – to be freed of the Fed.
EURUSD target 1.40.