I felt pretty strongly about this one back at the tip of the year. I still do … here’s what I know – FX is the name of the game. Again, you can watch, talk and also make a lot of money trading the $YELP, $GPRO, $GOOGL, $AAPL, etc of the world but the REAL market is the currency market … this past year we have had a very real race to debase. and, quite frankly, it ain’t good folks.
This move by the Chinese was 1) expected and 2) ranks up there as a very big deal … nothing to really watch now, believe they are committed to depreciating their currency also.
One has to ask .. why is the worlds second largest economy taking these measures? Well, of course it’s because all is well and the global economy is doing GREAT! Or, could it be a global sovereign debt crisis and a house of cards?
Folks, there is a major global move occurring in the biggest market in the world – the FX market.
Not only is the YEN,RUBBLE and EURO simply crashing the Chinese Yuan continues to weaken against the USD. This is a big deal and should be watched closely. We’ve been blogging about it for a while (http://bartscharts.com//?s=yuan )
Appears, for now, our pattern has worked and the $$$ has again started to rise …