Like your charts, stop by sometime at my blog, and consider added to your blogroll. I added your site to my blogroll
Euro retraced 61.8% of the push up, so I call that a wave 2 down, now perhaps will be 3 up. 3 is normally larger than wave 1.
This would also be likely to push the US equities up. It doesn't have to, but they have been highly correlated in the past. The theory is that as the Euro goes up (USD goes down), people from Europe can more easily buy US equities, and in the US, they feel that it is better to hold "hard assets" i.e. stocks, instead of US currency.
I am not sure this really "makes sense" but the markets don't have to make sense
Like your charts, stop by sometime at my blog, and consider added to your blogroll. I added your site to my blogroll
ReplyDeleteEuro retraced 61.8% of the push up, so I call that a wave 2 down, now perhaps will be 3 up. 3 is normally larger than wave 1.
This would also be likely to push the US equities up. It doesn't have to, but they have been highly correlated in the past. The theory is that as the Euro goes up (USD goes down), people from Europe can more easily buy US equities, and in the US, they feel that it is better to hold "hard assets" i.e. stocks, instead of US currency.
I am not sure this really "makes sense" but the markets don't have to make sense
http://oahutrading.blogspot.com/2010/05/euro-going-on-bull-run.html
@steveo
ReplyDeleteit's a valid point that you are making. Thanks for adding me to your blogroll