Sunday, March 24, 2013

Euro End Game or Why the SP is Rocketing

First of all the following post found on Zero Hedge, is an excellent readable summary, and likely conclusion.

JPMorgan On The Inevitability Of Europe-Wide Capital Controls

 Given the current path Europe is traveling down it is no wonder that we have seen a pretty perky dollar lately.
Daily
 A little short term consolidation looks likely, and if you were Ben what would you do?
Last thing in the world he wants is a strong USD. BUT..


USD has been in a range since the 2008 crap out and it's right in the middle of it now, heading for the upside.

Of course if you"ve been burned by Gov.s and are shy of paper there is the obvious solution.
Weekly

A breakout projects to about $3000. 

Daily

Above 1640 and it's going. 

Physical assets have their own limitations however, and can be subject to controls as well.
When capital controls are really put in place and the population KNOWS the currency will be worthless, of course they will buy anything .....even stocks. 




No comments:

Post a Comment