Lets Pretend for a second. we are gonna merge the two largest wealth generators in the world together. the Foreign Exchange and The Stock Exchange.
The executive Branch has been putting pressure on the Federal Reserave for quite some time to throw in negative interest rates. This will weaken the dollar, as to currency traders such as myself, this signifies a very weak economic market in that country. what this also does is casue the central banks to charge customers such as JP Morgan, Bank of America, AKA Merrill Lynch, Wells Fargo to hold money in their reserves. Now we as investors and traders know that business DO NOT pay fees out of pocket, they pass it down to their customers... Us the normal people. So, now were getting charged to store money in their reserves. So, What do we do as consumers? well instead of losing money to something that will not benefit us we pull our money out and either purposefully spend it or accidently spend it. Either way it gets liquidated back into the economy. and what do the other banks do? Give out loans more freely. this is becasue a fee is a 100% guarenteed loss, however, if we loan out to a failing business we have XXX % chance of getting our money back. Now, 1.00 % chance is better than 0.00% chance.
So next, the first quater was rough for many companies but it was still better than what Q2 is going to be. Q2 has almost 2.5 months of no income revenue for many business as to where Q1 had two months of earning power, then the economic shut down. so when the earnings come out or the company publishes their 10Q Report Investors are going to sell.
All of that to say we have a Dirty Bullish Alternate Bat pattern on GM and the same is similar for Ford (F). 10Q comes out shares drop into the PRZ and we get a good bounce with the Q3 reports come out to show growth.
#RISKFREEORBUST
GM
The executive Branch has been putting pressure on the Federal Reserave for quite some time to throw in negative interest rates. This will weaken the dollar, as to currency traders such as myself, this signifies a very weak economic market in that country. what this also does is casue the central banks to charge customers such as JP Morgan, Bank of America, AKA Merrill Lynch, Wells Fargo to hold money in their reserves. Now we as investors and traders know that business DO NOT pay fees out of pocket, they pass it down to their customers... Us the normal people. So, now were getting charged to store money in their reserves. So, What do we do as consumers? well instead of losing money to something that will not benefit us we pull our money out and either purposefully spend it or accidently spend it. Either way it gets liquidated back into the economy. and what do the other banks do? Give out loans more freely. this is becasue a fee is a 100% guarenteed loss, however, if we loan out to a failing business we have XXX % chance of getting our money back. Now, 1.00 % chance is better than 0.00% chance.
So next, the first quater was rough for many companies but it was still better than what Q2 is going to be. Q2 has almost 2.5 months of no income revenue for many business as to where Q1 had two months of earning power, then the economic shut down. so when the earnings come out or the company publishes their 10Q Report Investors are going to sell.
All of that to say we have a Dirty Bullish Alternate Bat pattern on GM and the same is similar for Ford (F). 10Q comes out shares drop into the PRZ and we get a good bounce with the Q3 reports come out to show growth.
#RISKFREEORBUST
GM