Wednesday, May 19, 2010
Euro Government Intervention Rumor
There is a dubious rumor about government intervention in the euro and that is why it turned around from under 1.22 to above 1.23. I don't think you get bottoms in a currency from rumors of government buying or from government buying. This is only delaying the inevitable flush out. The euro is a crowded short, but the momentum is so strong that we probably need a panic bottom before we get a sustained turnaround. I think the bottom will take longer than many expect. We may have short term bottoms that last a day or two, but I think we need to really shake the bulls and test those depths from Thursday May 6 to get a sustained bottom.
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
Market Owl, are you referring to just Euro here in your post or the market in general? Seems like you mean the market in the latter part. You really think we need to see the bottom of the flash crash again before we go higher?
I think we need to see a clean break of 1100 to get the weak longs out of this market and get rid of the overhead sellers. I think a trip down to 1080 would do it, I don't think we have the energy to get it down to 1060.
Post a Comment