Originally Posted by MEMMEZZ
looks like we're gonna be testing 1275-1300 soon. enough talk about october lows, lets talk about october highs
Not so sure. This interest rate business of 0.5% cut across all central bank loans globally is a big deal, if you trade forex. This does not address in any way the Euro Crisis, nor the funding issues of EFSF and Italy's bond markets. It's nice to say the Central Banks are collectively working together, but it also shows things have been a lot worse than we expected for such large-scale action. Today was a big buffer for household and business credit lines in the event of a Euro Collaspe. The Central banks globally got together to do this? Holy shit. That means it must be pretty bad in Europe.
But Europe isn't a liquidity crisis, and liquidity has already racked everyman and his dog with debt for the past 3 years. Who's to say households and business will borrow more? Can they even? And why the central banks have come together to slash interest rates, the bigger news is that they haven't come together to save the countries, only prepare for their collapse. Interesting...
I'm expecting markets to realize something after today. That 400 point rally today was on 25M Volume. That is not a rally. That is artificial, and we all know what has happened to every artificial rally in history. Poof.