3 replies to this topic

[Douglas]

The Bank of England showed the FED how to do it today raising their overnight lending rate from 0.1% all the way up to 0.25%, well, pequeno cojones, but better than the no cojones geldings at the FED.  This on a day that covid cases were setting another record high in the UK, and with inflation lower than the US.  This is also a bigger step than raising the US FED funds rate since many UK mortgages, unlike in the US, are adjustable and go up and down with this rate.  More amazing, the UK stock market as I type is up more than 1% in the face of this interest rate hike (a tyke hike, but a hike never the less).  

 

Unfortunately for Pound buyers like me, Cable loved this move and may have put in an important low, especially given the current commitment of futures traders positions.  Blighty leading from behind.  

 

Regards,

Douglas

[Douglas]

I meant to post the charts below relative to the Pound.  The first shows the Pound turning right at rather impressive support at the 38.2% retracement of the most recent run up.  The second shows the big money commercial traders have taken a large position in the Pound in contrast to the small traders and large speculators who are short.  Over the longer term it usually pays to bet with the big money boys.

 

 

 

Regards,

Douglas

[LMF]

The small caps are the canary right now. TNA below the 200 day MA for 3 solid weeks now, the closest thing to trading hell for a 3x ETF. The Fed wont be able to do a rate hike ever in these conditions. Look at the end of 2018 for their previous episode of the stupid mode.

[steadyquest]

Hurricane watch

https://www.youtube....h?v=H1jTw834KbY

 

Another open stream from RSOTC  https://rightsideofthechart.com/