quietly FED has foreclosed a Bank on Friday late afternoon: INDY MAC. Senator Schumer last month issued a warning on the Bank, and it triggered a Bank Run on INDY MAC.
Finally it is closed on Friday.
Some Asia newspaper have it on Front Page over the weekend. Watch out for Tsunamis in Asia on Monday morning.
The latest rally last week in Asia, has sucked in quite a few monies. Won't be surprised to see a 10% correction next week in Asia.
Phil Gramm (McCain economic adviser) calls American whiners. It has always been the characteristics of Republicans to scorn on the poor, the unfortunate.
I had a nap, and I dreamt. I dreamt, Euro breaking 1.6000 in a whiff, and rose past 1.6100, 1.6200 within minutes.
You can imagine it on your screen. A Long White Candle, rising, rising. when everybody is covering their shorts.
FED is now helpless against a plunging USD. They are now handstrapped. They can't rescus Freddie and Fannie, as this would load another 5 trillion of debt onto existing 9 trillion debt owing to Foreign Governments. (I just can't resist the thought that the Chinese has lost big time on their Foreign Reserve. The Chinese had almost 2 yrs of time to diversify out of USD, and they prefer to engage in useless dialogue with Hank Paulson, thanx to Wu Yi, the dragon lady of China).
And FED cannot defend the dollar as they have higher priorities, e.g. buying out the Banks and GSEs. And it is all now resting in the hands of ECB. Oil is going to rise beyond 150 towards 200, and ECB would be most reluctant to weaken the Euro.
As I has always advised my readers, stay out of GBP. It is not worth the risk playing a highly manipulated currency. It swings up and down defying any technical indicators.
Long Euro 1.5860
Target 1.6300
Stoploss 1.5820
the risk is that Bush forestall the market, and announce the release of American Strategic Petroleum Reserve (SPR). This would trigger a down move in Oil, or perhaps a spike to 150 and downwards. Similarly for forex, a spike of Euro to 1.6000 and then down.
There are some interesting Google Ads here, e.g. I saw one saying "the stock market is ready to soar". Obviously, the pip pipper leading the children to drown.
However some of the Ads offer some interesting Commentaries and Free Trading Charts, do explore the links here. The link to SAXOBANK on the right is worthy to explore, they have good news and platform.
If you agree that Euro would break 1.6000 coming week, pls click on the Google Ads.
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