Saturday, 31 of July of 2010

Government Needs To Govern

Every Thursday, CNBC stands on ceremony to reveal the Department of Labor’s exciting weekly unemployment report.  If you have witnessed the spectacle once, say a year ago, and you listened to today’s ceremony, you would not see, hear or feel much difference.  After all, baloney is baloney. 

The Labor Department, the Obama Administration, the Congress and the media go through the motions, but none of these groups possess the strength of character, the moral integrity or the conviction to do the right thing and address unemployment from top to bottom until it is fixed.   

For one thing, the politicians are too busy making news and shaping a statistically attractive re-election profile to work on anything constructive, like employment reform.  It is easier and safer to point fingers than sit down and work on solving the country’s biggest problem. 

Even the eloquent and hopeful tones of President Barrack Obama have worn thin under the weight of 14.6 million unemployed workers. The President has become another media puppet, playing Main Street at every chance he gets to repeat his fading chorus for change, which is now spelled F-R-U-S-T-R-A-T-I-O-N.

If you did not have a job; if you were not sure your job would be there come Monday; if you had one or more persons counting on that job, you would find the Thursday media feeding, the President and the Congress of the United States obnoxious, insensitive and arrogant.

Realistically, how could the weekly jobs report improve? 

The government cannot afford the employees it has, especially the ones in the high places.  Businesses are afraid to spend money because they understand that next time, there will be no bailouts and because there are so many costly legislative acts on the table that nobody knows what a new employee might really cost.  Besides, many businesses are profiting better than ever by trimming payrolls.  New entrepreneurs have no access to credit and, at this time, investors are not prone to risk.

The people we have elected to solve these problems appear little more than a disjointed three-ring circus.  The Congress cannot agree with the Senate.  Nobody agrees with the President.  All three circus rings lack leadership. 

The audience sees plenty of smokescreens but no solutions. What this country nee

Read more…


GBP/USD Still Above 1.55, Bullishness Potentially Targeting 1.58

GBP/USD (a daily chart of which is shown) as of Friday (7/30/2010) has consolidated above 1.5500, a prior resistance region that was broken to the upside earlier in the week. This occurs within the context of a strong accelerated uptrend extending originally from the 1.4230 area lows in May, and after price just hit a fresh 5-month high on Thursday. For more GBP/USD technical analysis, please click here.

James Chen, CTA, CMT


USD Showing Mixed Signals

By: Hillel Fuld
The USD rallied vs the EUR but declined against the JPY on Wednesday as U.S. durable goods orders were weaker than was expected and added to fears about financial recovery in the world’s greatest economy.

Also driving risk aversion was a Federal Reserve report stating that overall U.S. economic news was not improving robustly and a few areas of the United States had lost steam over the past few weeks.

The Fed’s Beige Book summary of national economic conditions, based on information before July 19, pointed to a pesimistic recovery with sluggish housing markets and declining sales of costly items like new cars.

Read more…


AUD/USD Breaks 200-day SMA and Looks Toppy

The dramatic drop in the aussie last night when the CPI was released at 9:30pm EST pushed prices lower in what I deemed a “too far-too fast” manner. In other words, regardless of the negativity of the move, it appears some moves are simply unsustainable. I realize this is a very subjective determination so I need to rely on my charts to justify and measure what the move means in terms of support and resistance. However, I think it is very important to understand that there is a vast difference between a negative market sentiment and a bearish trend; I believe the culmination of a negative market sentiment creates a bearish trend.

The 15, 30, and 60-minute time frames were all moving in a sideways neutral market cycle before the sharp sell-off. The

Read more…


Yen Weakens Against the Majors

The Yen fell against most of the major currencies during last week’s trading session. The Yen dropped about 100 pips vs. the Dollar and about 300 pips against the Pound, and the GBP/JPY pair is now trading near the 135.50 level.

The Yen dropped last week due to speculations that Asia’s economic recovery is advancing. These speculations have increased risk-appetite in the market, and have turned investors to look for riskier assets. The Yen is considered to be a safe-haven currency, and tends to fall as risk aversion weakens.

Read more…


Forex Signals – EUR/USD Mixed Signals

Recap: Good morning PipHutters! You may have already noticed some changes to the site (login screen is different, there is a “PRO” menu item at the top) and lots more will be coming out all this week as well as several announcements. For now, lets recap last week:

Pretty good trading week overall. The pair hardly moved from start to finish on the week nearly forming a doji on the weekly chart. This played pretty well into our strategy of buying on dips as nearly every dip produced a jump back upwards. In

Read more…