developeralgo222

Queen Euro (EURUSD) and Prince DowJones, a dance of lifetime

developeralgo222 Updated   
FX:EURUSD   Euro / U.S. Dollar
This marriage is in trouble, Queen Euro of EU has so many suitors , just to name a few

King Dollar ( USDX Index) of US --- Always unpredictable and drunk most of the time, but rules the world.
King Gold ( XAUUSD ) of former World--- an old-timer, former King with no prospects of ascending to the throne again for long-term
Prince DowJones ( DOW30) of US --- The bigger brother of Prince SP500 and Prince Nasdaq . He is always fancy, corrupt and ruthless
Prince SP500 ( SPX ) of US --- Predictable and stable
Prince Nasdaq ( NDX) of US --- The Casanova, the Player Prince and ambitious . The shinny object (glitter)
King Yuan of China --- Always level headed, stable but extremely ambitious to rule the world. Always looking for trouble but great at doing business and building anything. He is ruthless when it comes doing business, he will win at all costs.

Here is the problem none of this kings and prince have their acts together at the moment to win over Queen Euro of EU.

Look at the long-term chart and ratio indicator , i see some warnings. is it a bubble ? i don't know but looks like a first warning shot .

NOTE: this can last 6 months to 2 years before a collapse of anything, so don't rush start buying or selling assets.

Factors in play:

-- Excessive liquidity from central banks across the world ( But Sir, where is the mop to clean all this liquidity ? Does Debt even matter any more ? )
-- Interest rates across all major economies around world are Zero or near zero ( Gosh ! , Are we now going to pay banks interest to keep our money ?)
-- Sovereign bond yields & US Treasuries are negative or approaching Zero ( if Debt is no longer the King , what happened ? )

Somebody will be left holding the bag ? But who ?

Whenever the indicator reaches above 140 Level then it is a warning that something is happening in the underlying structure . How that change is going to affect the reaction to the global assets is very unpredictable at the moment .
Forex spot & futures are always an early indicator of structural changes in the underlying global markets.

WARNING: check your guts at the door and watch your euphoria, buckle up , it might get ugly .
Comment:
if Bonds & Treasury markets are the largest asset class in the world worth over US$ 21 Trillion Dollars and some market analysts are saying the Bond Market is in trouble and money managers are piling into Stocks . My question is : isn't that a bubble in the stock market .

Major Bond Markets combined == Over US$ 21 Trillion
Major Stock Markets combined == Over US$ 6 Trillion

if you move even just another US$ 3 to 10 Trillion to Stock markets that creates a very huge bubble.

You know that its a bubble when you only need a business plan and your company is valued at over US$60 Billion without any product at all. Does anyone recall dot.com bubble in 2000
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