Large amount of updates this week. Lots of technical price patterns that e are all watching recently, with many triangles evident in many asset classes. These type of patterns usually develop with uncertainty. Currently, uncertainty arises from awful deterioration in credit markets which is bearish; and optimistic improvement in economic data which is... I guess bullish, at least for the time being.
Soybean complex surpsied on the upside this week, but apart from that it was the regular safe haven assets (I'll would call them anything but that) gaining this week. US Dollar and Treasury Bonds manage to record another week of gains. On the downside, the talk was all about the metals Gold, Silver, Platinum, Palladium and Copper were all totally destroyed this week, with each down more than 6%. As a matter of fact, at one point in time Silver was down almost 13% this week. Equities and Crude Oil were also major losers this week too!
Talk Of The Week
All eyes are on the Eurozone Debt Crisis week after week. The question now is, are we going to get some type of a relief soon? It seems that the market participants are now positioned for a total collapse of the Euro against the Dollar, which is much much worse than it was in June of later year. The chart above shows record net short exposure against the Euro, which means either a total crash from these levels or a more likely outcome of Eurocrats announcing some type of non sense that will make everyone cover and create a super short squeeze.
On that note, I hope everyone enjoys the rest of their weekend!!