On the Macro front last nights Philly Fed caught most by surprise. Whilst I believe its only a minor bump in the road on the ongoing US economic recovery it did give the QEIII bunch something to cheer about. Obviously with a re-election coming up.. a strong stock market and improving economic sentiment will be in the cross-hairs of the current administration and Fed, whether or not they will need to pullout QEIII or not remains to be seen. This writer believes that QEIII will only be enacted should the European scenario spin out of control toward destruction.
And so it is we go back to Europe.... After so long now I am really becoming tired of this situation.. Will Greece leave the Eur? No. Will the Market have another crack at Spain? Yup. Will Germany finally come around to the fact that they are involved in this upto their teeth and have no choice but to open the cheque book? Yup. Lets face it..the Euromob have become masters at can kicking and have it down pat. Austerity measures are of course needed..but in the case of Greece as was the case in Argentina decades earlier...How about we just get rid of the rorts and excesses first.. stabilise the situation and rather than slash and burn.. streamline and find efficiencies. Ohh and introduce the idea of equitable taxation as a common good from the kindergarten level..
From a trading perspective when Fundamentals and Technicals disagree, go with the Technicals.
For those that are watching EurJpy.
Daily Head and Shoulder pattern continues to play out with a target zone in between 98.80/99.50 with the 88.6 Fib at 98.66. Whilst not an Elliotician it does look suspiciously like we are in the 3rd wave which might play well into the idea of a bounce up in 4 then a final run lower toward the previous low at 97.00.
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