Posts by "catnip"

Sure there is always psychology involved. When you go out for fishing because the weather is fine instead of another day of trading there is psychology involved. But my approach is another my "theorem" says all markets are mutually dependent. Thus one cannot get a signal from a market that depends only on itself, but that is the approach of technical analysis and of EW. Thus I make a difference between a signal that is not from the market, and the market's response to the signal. This is of course psychological ( it cannot be otherwise ) only that I do not call it psychology I call it memory. Memory has the advantage that it has routines. That is one responds to signals automatically you don't think hey what the heck could that red light mean but you automatically slow down.
So briefly I use a system theory approach. Btw the legendary ole Doug Kass used around 10 variables
to determine whether buy or sell or hold some particular stock.

The difference is BOJ and FED fighting deflation ECB creating inflation.

Just Bloomberg for today "Greece Sells $2.1 Billion of Debt After Rescue Plan "

Greece sold 780 million euros ($1.06 billion) of 26-week bills at a yield of 4.55 percent, with bids for 7.67 times the securities offered, the nations debt agency said today in Athens. It also offered 780 million euros of 52-week securities at a yield of 4.85 percent, with a bid-to-cover ratio of 6.54 times. The Public Debt Management Agency said last week it had planned to sell a combined 1.2 billion euros of the bills.
My comment: this reflects just a zero fail risk for short term because of EU pledge. Nevertheless in the course of the auction EUR/USD fell 60 pips.

Wait for sales of Greece short term bonds. I expect auction will meet demand at interest close to but beyond EU cap 5%. Keep in mind the USD wouldn't near collapse if Idaho goes bust although its contribution to GDP is about that of Greece to EU GDP. What is in question is EUR not Greece. Gr is entirely unimportant.