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Originally posted by 44soulslayer
83 is not support on that graph.
In fact currencies don't even have support/ resistance levels.
Originally posted by Make Speed Limit 45
Both the dollar and the long bond are below their 200 day moving averages and that's very negative. Maybe investors are finally realizing how stupid it is to think of the $ as a safe haven now.
The next big turning point: this weekend
Nevertheless, of note to all investors, is that there is another Armstrong turn date coming on 2009.3, or 19-20 April. What we have to figure out is which market is going to turn.
The pyramid could crumble
What's more important is what Bernanke didn't say: that this time, the biggest potential danger isn't from a slowdown in the U.S. or Chinese economies. It's from the pyramid of leverage in the debt markets created by traders and speculators using cheap money from around the globe, and in particular from Japan. The sell-off of Feb. 27 demonstrated how a panicked unwinding of that pyramid of debt could send financial markets into chaos.
His answer on Feb. 28 was reassuring to the markets in the short term, but I worry that all it does is extend the complacency about risk piled on risk in the debt markets that got us into this fix in the first place.
Let me first run through the evidence from the market action on Feb. 27 that shows that the problem is in the financial markets and not in the economy....