MBO Issue 38 (Feb 2015) Nowhere To Hide

By Lawrence


  • Review
  • Euro Easy Ride Is Over
  • S&P At Risk Of A 10% Correction
  • Gold Channel Drifting
  • Big Picture Summary



Euro collapsed to 1.17-1.18 minimal target zone with just a pause and cleared the zone with no bounce at all. That opened the door to the 1.12 long term support zone. Thanks to ECB’s continuing effort to ensure the destruction of euro, we got the 1.12 target quickly too.

S&P volatility picked up right on schedule and gave us the biggest roller coaster ride since 2009. Day traders without prior experience in dealing with two-way extreme swings are cleaned out over the past few weeks. The drop in internet chatter activities discussing about the stock markets clearly indicates the cleansing process is in progress.

Gold gave us the break out play and ran up to its nearest resistance quickly. Strong reaction to the resistance zone was expected and we saw a strong pullback into the end of January. As many gold buyers suddenly realize their money is stuck and pretty much everywhere else the trading opportunities are better, unloading gold to look for better trading opportunities is normal.


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