Dixieland. Issue #2 from 11.09.2016

5 months ago

Last week we could perfectly see how "Sell rumours, buy facts" work. Well, for now we´ve only seen the "Sell rumours" part...

US Dollar index             climbed from the lows of the week after testing the uptrend line and, after the verbal intervention of one of the FED voting members, SPX500             index plunged.

Obviously, many people talked about the intervention and few noticed that there was another news from the FED behind: the Countercyclical Capital Buffer or CCyB. The details can be found on one of the links below. When this is implemented, the basic outcome is that the banks will may find difficulties on buying bonds at the emerging markets and junk bonds. In search of profitability, emerging markets and junks experiencing an impotant bounce this year, so CCyB will basically drop the risk/reward level below the reasonable limits.

The reaction to this was a clearly risk-off: indexes dropped and I expect oil             , gold             , Euro             and GBP to follow next week. Many will run into the US Dollar             before the next FED meeting.
5 months ago
Comment: Still developing before the September FED meeting
4 months ago
Comment: Flat flat flat... Oil and SPX500 are ready to fly which opens possibilities for a trendline breakdown.
4 months ago
Comment: Getting close to the target. I bet it is time for a new issue of the "Dixieland" which will be published on a weekend
5 months ago
u mean last friday sell off for euro is just a teaser and more to come? no wonder jim rogers is still hanging on to his largest cry - USD, knowing it will go up further.
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