July 12 links: Raging contagion

David Llewellyn-Smith
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  1. Montgomery Burns

    I guess with Belgium in the mix there is a challenge to come up with a new acronym.

  2. the overnight charts do not look good for long traders/investors.

    The Euro is getting smashed against the USD, Swiss Franc (and gold). Check out Avid Chartist’s post from yesterday: http://www.avidchartist.com/2011/07/usd-continues-higher.html

    Pound sterling is at an all year low and looks like failing a classic head and shoulders pattern against the USD.

    As a result, the US dollar Index (DXY) is now forming a very solid base culminating in an ascending triangle. T Bonds and T Notes are getting bid up tremendously, with yields going to Japan earthquake lows.

    There appears to be little, if any confidence in risk markets at the moment. The AUD is holding up for the moment, whilst gold (in USD) is attempting another breakout above $1550….

    The ASX200 will open about 1% lower today.

    • Prince, the dates and times on my site are GMT. So those charts were posted just before brekkie this morning (Oz EST).
      Wish I had time to post more charts this morning before attending to the kids and heading off to the 9 to 5. Suffice it to say, while the best games in town are definitely short EUR/USD & GBP/USD, there are also good arguments for shorting Gold and Silver, and going long the ASX 200 if it can stay above 4520ish today.