reply to post by Rockpuck
The consequence is severe, no doubt
The consequences are/ will already be severe enough IMO as the next couple quarters of USA profits will most likely suffer
I am wondering how much of this is currently being priced into equity prices currently
Just going by nothing other than dumb everyday logic, I don't see a reason why EUR/USD should ever be above 1.20 personally - anything above 1.20 to
me is just implying that US Equity Markets > equilibrium
Anyway, if you do look at a Eurodollar extended chart you will see that this model we are in right now currently fits into the "harmonic". This
basically means this "side of the equation" is currently reflecting the "opposite side of the equation".
I will post a picture that makes this easier to grasp
The .85 target is if someone actually does end up defaulting/leaving and then it is up in the air - that is my destruction target akin to DOW 5500
I think 1.00 is realistic, but with currencies, must take a lot of time to unfold
Going by the "harmonic" this could also be the exact bottom, or close to it
These predictions are only as good as the actual news / events to follow that actually do happen - so nothing is a science and nothing is a "lock".
As everything else, total speculation
As you can see in the picture below, it will be interesting to see how it "fulfills" its previous movements, and the implications of such in the
If we think that this is the base - or the bottom - which it also could be, we are going to see a fast retracement to the 1.3x levels
If the picture below doesnt fit...