Euro Closed 12820
The closing for the Euro on spot at 128.20 on Friday was a serious break of support. The primary bank of support now lies at the 12100 area. This week proved to be a minor Panic Cycle taking out both the previous high and low. The turning points ahead are next week and the week of 04/15. If we have a knee-jerk reaction rising first, this should push the low into May. However, a collapse next week of 12100, could be followed by a rally into 04/15 with a resumption to the decline thereafter.
The primary channel shows the Euro never broke out to the upside and has been in a slow gradual decline. The primary support lies at the bottom of this channel in the 11100 area.
Splitting the Blog
We will be splitting the Blog soon between markets and world events. We only put on news that illustrates a global trend not the general nonsense. This is to keep you up to date as the world turns so you can see the problems emerging beyond the myopic horizon of traditional economic analysis. It is becoming a zoo and the monkeys are in charge worldwide.
No matter what the crisis, we always seem to get the calls. They always want to know what the computer has to say. Other than answering questions in the middle of a panic, I would say only China and Britain back in 1992 ever did what we advised. Britain only because there was no choice. We were asked in 1989 by several central banks if they should intervene. We said no – it would not be necessary it was Japan in crisis mode. They did not intervene, but who knows, they may not have otherwise anyway so we do not count that one.
Politicians will ONLY make decisions that protect their vested positions. It is NEVER about representing the people, what is best for the nation, just for their own survival. Change will ONLY come when there is no choice.
I would never trust these people to wash my clothes. It would be way too complicated with all the colors and what-not for them to make a decision.