Jack the Pipper

Nick Ellis, one of the many intelligent and articulate readers of Currency Currents (and sincerely honored about that fact we are), recently sent us what I believe is a brilliant and succinct summary of our current economic/political morass.

Another jobs report and more questions abound about the underlying strength of the US economy.

Given the incredible irresponsibility of our government in handling its finances, the dollar deserves to be doomed.

The 20-period Bollinger Bands on a chart of EIRL (iShares MSCI Ireland Capped ETF) narrowed dramatically.

I’ve read Nassim Taleb’s investment books. Over the years I have watched Taleb emerge into the public eye and share investment pronouncements.

We keep hearing near panic pronouncements about interest rates soaring should the Fed start tapering.

The IMF has aired the dirty laundry. They have made known the growth head-winds and the financial risks.

Using a simple A-B-C count of the legs, or waves, down in the US dollar index shows the last leg, or C-wave in this chart, found support right at a key exetnsion level, i.e. wave C = 76.4% of wave A.

If interest yield is the one powerful driver in the currency markets operating in the background, then this chart suggest either the euro is about to take a nosedive, or US short-rates are about to plunge.

I was made privy to some analysis recently disseminated by an analyst who resides at a newsletter firm. And though not surprised given the nature of the newsletter business, I noted a degree of confidence in his analysis that screamed more loudly than usual, “I know more than Mr. Market. Period!”