Who here thinks Dow will fall to 12500 by the end of the day?
December 1st, 2008
lucstudent asked:
I believe the Dow will hit 12500 today. Considering that not only have all support levels for the Dow has been broken, but there should also be mass volatility coming into the market. I also study the correlation between Forex and the Dow. Central banks have strong control over the rate of exchange between countries. For the pass few days, the JPY has greatly appreciated against the USD and the EUR and GBP has strongly devalued against the USD. During these pass few days is also when the DOW faced heavy correction. As of now, the U.S. markets hasn’t even opened, but EUR has devalued a hundred pips and JPY has appreciated over a 100 pip in a matter of seconds. I’ve never seen a move so powerful before. I think this is a strong indication that the Central banks is EXPECTING another severe drop, and this strong movement explains how the Central bank’s expectations are being factored into the price.
Almost there
KRAUSE
I believe the Dow will hit 12500 today. Considering that not only have all support levels for the Dow has been broken, but there should also be mass volatility coming into the market. I also study the correlation between Forex and the Dow. Central banks have strong control over the rate of exchange between countries. For the pass few days, the JPY has greatly appreciated against the USD and the EUR and GBP has strongly devalued against the USD. During these pass few days is also when the DOW faced heavy correction. As of now, the U.S. markets hasn’t even opened, but EUR has devalued a hundred pips and JPY has appreciated over a 100 pip in a matter of seconds. I’ve never seen a move so powerful before. I think this is a strong indication that the Central banks is EXPECTING another severe drop, and this strong movement explains how the Central bank’s expectations are being factored into the price.
Almost there
KRAUSE