FX:GER30   DAX index of German listed shares
400 3 6
After the big ''shock'' that took place on the markets after the brexit vote was real, the markets are deciding what to do next. Central banks already stated they will keep providing liquidity to the markets. This means they will drive up the prices. Hedge funds and other investors know the real economy is on a global slowdown. Retail investors are locked in their long positions after the brexit decline, and are holding on to the illusion that markets will go up indefinitely. So now the battle is between the central banks trying to push markets up again, and the hedge funds being short and trying to take the central banks money. The next few weeks will be very interesting to see what will happen to the markets. IF the central banks are winning we will see a break of the bullish breakout zone, and after markets will try to reach and brake the resistance line for the 4th time. If this happens be prepared for the next trigger that will cause the markets to drop again, this time harder than we have seen before.
So you honestly believe the printing press can be defeated?
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Chris1983 Childrenofmen
No of course not. Printing press cannot be defeated unless they are turned off.
Quote: ''So now the battle is between the central banks trying to push markets up again, and the hedge funds being short and trying to take the central banks money. The next few weeks will be very interesting to see what will happen to the markets.''
There can be several factors making the central banks to stop manipulating the markets, amongst others this can be they have to stop easing because of too big bubble creation in the markets, at which point they will have to let the markets fall.
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Childrenofmen Chris1983
I can see that happening in the future, especially when they all turn NIRP. Then the sheep will be awake to causing even more political upheaval.
Question is how long can they continue! And thats a very risky element for short term trades.
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