Hi everyone its Monday August 8, and the markets are definitely reacting to the news of a downgrade not just to the U.S. credit rating but also to Fannie and Freddie. The trading hours started quite randomly, with the news coming out of Europe that the ECB has been buying bonds to get Spain and Italy out of the hole they are in and almost in default; the euro has been dropping for most of the day. [...]

There has been a lot of talk this weekend about who truly owns the United States debt and a lot of this talk has been wrong. The number one place people always point to is China, and while they do provide us with cash, its just a small amount of what we use. The info-graphic below shows how most of our debt is actually held by Americans.   Notes: “All Other Foreign Nations” are all those [...]

Nice photo description of the United States political system, very accurate: When top-level guys look down, they see only shitheads; When bottom level guys look up, they see only assholes. Short, sweet and to the point! Source: http://politicsandfinance.blogspot.com/2011/08/hilarious-yet-true-depiction-of-us.html

Hi everyone, so I normally don’t do weekend recaps, since we rarely receive such important news after the markets close on a Friday. But this weekend has just been to intense to not give it some attention. I do want to point out one very important thing, while the USD is going to go for a short-term tumble, I doubt this will be a long-term collapse for the USD. While the news of the S&P [...]

Some key events for the week:

Well I am not sure who did not see the United States credit rating down grade this past Friday afternoon after the closing bell. With all the issues in Congress dealing with the debt ceiling in the most awful way possible, a downgrade was all but a sure thing in my book. Not only that but with the massive sell off that happened in the U.S. markets and the Dow plummeting 500 points, we could [...]

Hello everyone here is the weekly recap of the 4 hour breakout on the USD/JPY. It was one great week for this pair especially if you took the long trade on it. Lets look at the screen shot below: On the short side the pair crossed the first take profit level with 75 pips in the bank. But the kicker here is the retracement it made all the way past the high of the first [...]

Hello everyone just a late recap on what happened the week of August 1 to August 5, 2011. The GBP/JPY one of my favorite pairs as you know had a pretty good week even with all the market turmoil that occurred this week.The screen shot below shows how it broke both on the short and long side of the first 4 hour candle of the week. If the rules would have been followed to the [...]

Hey everyone I hope you have all had a great summer and if not enjoy the last bit of it, since its about to get nasty out there. I just moved the site to a new hosting provider due to issues with my old one. It was a bad move but finally got the site up, well mostly up. I am still trying to check for dead links and missing pictures but it is mostly [...]

S&P downgrades US credit rating from AAA to AA+ In a highly anticipated move, S&P on Friday – after markets closed – downgraded US credit rating from AAA to AA+. It is the first time this happens for US after the AAA was awarded to the nation in 1917. The announcement came after a trading session, which had seen US stocks moving up and down and up again in thin, nervous market conditions. The effect [...]