The most bearish market right now is the euro. It doesn't matter if the market is up, euro still manages to go down. It finds a way. The only time it ever rallies is from jumpy shorts who want to flatten out before the weekend. Then it goes back down again. This has been going on all May. Sure sentiment is bearish, but it would be asinine for it to be bullish in the face of such a ferocious downtrend. The downtrend should continue for another couple of weeks until some poor Euro longs cry uncle and spill their guts out.
The ES continues to be the strongest of the weak despite its massive relative overvaluation to Europe and Asia. Fund managers are still hanging on to their US goodies, viewing them as treasures and throwing out everything else, oil, gold, emerging markets. This bear trend will not end until we get them throwing out their treasures.
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3 comments:
it is not eur, it is USD. look at cable and AUD
Seasick..up and down market
We will be under 1290 next week. Question is, do we bounce from or keep selling off till next week?
Nonfarm payrolls might be a setup to squeeze shorts one last time before the markets make their final waterfall decline next week.
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