claydoctor

USDJPY - KING DOLLAR - MARKETS what should have happened

Short
FX:USDJPY   U.S. Dollar / Japanese Yen
4
This is the story of how Abe changed the world (markets). This market is similar to the summer of 2011. Except for one thing Abe. Abenomics started Nov 2013 (effects anyway) ish, the first arrow, then the 2nd and indicated by the vertical line(s), and then the 3rd. Markets absolutely loved it and him. The blue lines ARE WHAT SHOULD HAVE HAPPENED if fundamentals ruled the day, AKA NORMAL. The King Dollar is at a multi year high resistance level. Abe is out of "effective" arrows, at least to the significance of the previous ones. The Russell looking very heavy, loosing momentum, and support from the Abe stimulus, ECB trying to QE and cannot, trying to fling even one arrow that works, because they are divided the arrow will not fly. The FED wants to raise rates, and see QE die. US markets looking strorger, but if Japan slows, Euro zone slows (it is and will), and I am hearing that China wants to slow, and with all its bubbles (real estate ghost towns, etc.) industry and sector leaders disappearing, it could even collapse, or at least have a few smaller bubbles pop. So where does the support come from? The US. Ha. The middle class of the US, and its consumers have supported the US economy for decades now, but Obama, and his unfriendly corporate policies, have seen the rats leave the sinking ship, and no inversion laws to prevent further inversions will help what has already happened. The few left are stuck, but no matter what is done, the layoffs versus new jobs equalibrium will not change into way more jobs than those being eliminated daily by new tech, and even more corporate tightening. Shareholders and not employees or customers. This pot has been brewing for a while, and the IWM has been the leading indicator, not the trailer that has to catch up to the big caps. Its the other way around foilks. The US economy is not strong enough to save the world and the US markets, even if you eliminate exposure to EM and Euro and China, GDP to debt ratio will be the final bow. For every 100 basis points we raise rates, it costs us 150 billion in interest on the debt. GDP to debt has always done us in, and we are there now. The tipping point may be the college debt, which is what, over 1.5 trillion, more than most other debt pockets. FED cannot raise rates, just cannot. This entire market's bollinger bands are tightening like a noose. And with all the unrest, this low Vol time is OVER. Sorry 3% dippers, buying this one is a mistake. Its 10% or more this time around. Euro will have to stimulate out of desperation. The euro slide will stop. The Yen will strengthen, the Wan will, not sure, and the dollar will stop its rise soon, and assume yet another triangle. The unknowns will happen, and are not named. Heck, its October, what did you expect. The red blood moon October 8th will only add to the tensions in the middle East, and somehow Israel will become involved as a major player in something, even more than the Gaza thing, its just historical. ALL IMHO www.pray4zion.org/Th...omingBloodMoons.html
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