Bonds are selling off as June contracts are close to expire …
WHY???
Inflation is ramping, credit crunch seems managable … so the Hedges are SOLD.
And now the speculation starts … WHAT’s NEXT???
Interest rates HAVE TO RISE!!! Next step of FED and ECB will be UP … a rate HIKE!!!
This is reflected first in selling of long […]

Weekend ahead … time for weekly charts
Euro and OIL are working on a reversal today … EXACTLY at their targets …
Both had a nice uptrend, starting the second half of JULY 2007 …
the time, when everybody got aware of the huge problems within the financial system in the USA and this was the […]

As the US$ seemingly starts to accelerate its downtrend, here the monthly chart against the EURO.

Copyright by Tradestation
Long term downtrend of the US$ is intact and allows the EURO to rise between now and the year end to test the upper trendline to a level of 1,63 (now) and 1,70 (yearend).
The long term STOP is […]

… at least for now … but most certainly will
The reason is: People don’t (want to) understand, what is going on.
A classical case of desinformation and DENIAL. Like seeing light at the end of the tunnel and not realizing, that it is a STEAMTRAIN …
So far, any bubble was explainable and feelable. You […]

After reflecting this weekend over the current global situation and zapping through the long term charts, I think, the days of the carry trade are numbered.
Some long term trends are about to reverse soon, helped by a sentiment which calls contrarians to act.
Everybody is bearish on the US Dollar, everybody is bullish on the Euro. […]

Saudi Arabia, long time the most quiet and most conservative investor starts to move
State bank official was quoted yesterday, that they have to get rid of the Dollar PEG and to invest money through a SWF.
It is said, that it will the biggest SWF on the planet, even dwarfing ABU Dhabi’s 870bln$ in […]

As the fashion of today is setting up SWFs (sovereign wealth funds) … to save the world … or better … to convert earned dollars into knowledge and influence …
HERE COMES SAUDI ARABIA …
Seemingly trying not to be too far behind its neighbors … Saudi Arabia will set up the BIGGEST SWF, I just […]