This cover says exactly what I posted yesterday, financial engineering at its level best of its worst. These guys fabricated lower yields, fabricated data and fabricated the leverage with which to create the illusion. They made this whole thing up. Ususally exceeding expectation is a good thing - NOT IN THIS CASE.
The banks that borrowed, borrowed from an already insolvent ECB and with their appetite, confirmed just how desperate everyone involved really is. What’s more, is that this loan facility just makes everything worse, with the exception of the ONE DAY bounce we got…and that, as you can see, will not be a lasting legacy.
The dollar responded by testing the support level in the neckline of the Cup and Handle pattern and came down to the lower trend line as marked. Now the ridiculous policy of lending bankrupt institutions money that they can not and will not be able to repay will be justly rewarded.
Risk assets are now likely toast and the weekend charts that I posted are still 100% on track though they may have to wait for this holdiay week to pass. Of course, the equity volatility was higher than I would have liked but, all in all, NOTHING has changed and NOTHING has been FIXED.
I use Multicharts Charting and Backtesting Software.
I post high resolution charts made with Multicharts and Adobe Illustrator. Click on chart for a more detailled view.
If you do wish to contact me or have any questions you can do so at email@example.com
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.