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Ok VSA'ers-- I have a riddle for all of you.

 

Posted below are (2) charts a GBP/USD 1 Hr and a GBP/USD 4 hr.

 

On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming.

On the 4 Hour chart you see an upthrust after a nice start to the downward move. Which is indicative of further decline.

 

So if you were to take a trade looking at these charts. Would you go long? Or would you go short?

 

Looking forward to how everyone reads and analyzes this to come to a conclusion!

 

1Hr.jpg.66846d25ae3626935d97f4bad5842e58.jpg

 

4Hr.jpg.733e97cfcc3c7a8bc973a08e3ef1913c.jpg

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Ok VSA'ers-- I have a riddle for all of you.

 

Posted below are (2) charts a GBP/USD 1 Hr and a GBP/USD 4 hr.

 

On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming.

On the 4 Hour chart you see an upthrust after a nice start to the downward move. Which is indicative of further decline.

 

So if you were to take a trade looking at these charts. Would you go long? Or would you go short?

 

Looking forward to how everyone reads and analyzes this to come to a conclusion!

 

[ATTACH]5959[/ATTACH]

 

[ATTACH]5960[/ATTACH]

 

Since you are trading spot forex, where are you getting the volume shown in your charts from?

 

-fs

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On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming.

 

Sledge,

 

Don't you mean wall of SUPPORT around 1.9705 ?

 

 

Regards

Tawe

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Since you are trading spot forex, where are you getting the volume shown in your charts from?

 

-fs

 

Each platform from your broker should have a volume indicator attached. The MT4 has a pathetic "on-chart" volume (If you go to right click on chart, properties and radio button "volume,) and it also has the nice "tick" volume you see on my charts under the "indicators" tab.

 

But I have used plenty of platforms and all give you access to volume- be sure you are getting TICK volume though- that is the key to success in Forex!

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Sledge,

 

Don't you mean wall of SUPPORT around 1.9705 ?

 

 

Regards

Tawe

 

Honestly, I guess this is a debatable term. To me the market is working downward, so for it to go further, I call it resistance, whether correct or not as the term I'm not sure. Basically, it is a congestion area that it needs to be cracked, so I personally call that resistance if it is to penetrate it.

Sledge

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Honestly, I guess this is a debatable term. To me the market is working downward, so for it to go further, I call it resistance, whether correct or not as the term I'm not sure. Basically, it is a congestion area that it needs to be cracked, so I personally call that resistance if it is to penetrate it.

Sledge

 

I get your meaning now.

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I guessed support can turned quickly to resistance, but in formalizing a description, it should probably be called support because it has been the recent past swing lows.

Forex volume data are also 'tick' based data in that it is not something reported by an exchange and therefore only reflects a small subset of the total volume. It is like taking a poll in your own neighborhood which may not accurately reflect the national or international poll.

attachment.php?attachmentid=5969&stc=1&d=1207919493

5aa70e54925be_GBPUSD2008-04-11_090130.gif.c36a2ed3c6a1220d315918ef0ab879ad.gif

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Forex volume data are also 'tick' based data in that it is not something reported by an exchange and therefore only reflects a small subset of the total volume. It is like taking a poll in your own neighborhood which may not accurately reflect the national or international poll.

 

I have had this discussion before and it is basically, up to the trader to determine whether he/she feels it is valid or not. The principle is as follows:

1. Since Spot FX is NOT centrally Located, tick data will come from your broker and will be based on the contracts THEY carry.

2. My usage of the Tick Volume as per each platform- Each broker is carrying a small percentage of the TOTAL overall contracts being traded at any given time in the market.

3. It is my firm belief after looking at various brokers and platforms tick based volume that the actual # on the volume bar is less significant as the OVERALL relativity of the said bars SIZE in relationship to the preceeding bars on the "left of the chart"

4. So in a sense on a 1 hr bar my broker may have 3,879 as Volume- Your broker may have 4,856. If we compare the relative volume with the background- we are still able to make trading decisions via VSA.

5. I do believe that tick volume of any nature in Forex (because it is the best we are able to attain) is useful as long as we are looking at it in relative terms based on where you trade.

 

Sledge

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Each platform from your broker should have a volume indicator attached. The MT4 has a pathetic "on-chart" volume (If you go to right click on chart, properties and radio button "volume,) and it also has the nice "tick" volume you see on my charts under the "indicators" tab.

 

But I have used plenty of platforms and all give you access to volume- be sure you are getting TICK volume though- that is the key to success in Forex!

 

So it's not traded volume, but just the tick movement of each bar on the chart, correct?

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Forex volume data are also 'tick' based data in that it is not something reported by an exchange and therefore only reflects a small subset of the total volume. It is like taking a poll in your own neighborhood which may not accurately reflect the national or international poll.

 

That's true. But, even if one were able to obtain universal tick volume, it would indicate only the "busy-ness" of the trading, not share or contract volume. Whether one finds it useful or not depends on whether or not he's tossing virgins into the volcano.

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So it's not traded volume, but just the tick movement of each bar on the chart, correct?

 

Well it is traded volume- volume = activity

High Volume means pro $ is in on the bar (and the herd will be there as well)

 

So say you are at a market top- you see a high volume bar- with a narrow spread. It is an indication that there are herd demanding higher prices and professional money offloading all the longs to them as fast as they can. But the pro $ is bearish. So on that bar that looks "little" the volume is very high, because their was a transferring of ownership going on.

 

That bit of information will tell you quite a bit about what is coming next in the trend.

Sledge

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Well it is traded volume- volume = activity

High Volume means pro $ is in on the bar (and the herd will be there as well)

 

Sledge

 

OK. :crap:

 

So it's not really volume then. Just price movements on the chart.

 

Good to know you agree. :rofl:

 

-fs

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I have had this discussion before and it is basically, up to the trader to determine whether he/she feels it is valid or not. The principle is as follows:

1. Since Spot FX is NOT centrally Located, tick data will come from your broker and will be based on the contracts THEY carry.

2. My usage of the Tick Volume as per each platform- Each broker is carrying a small percentage of the TOTAL overall contracts being traded at any given time in the market.

3. It is my firm belief after looking at various brokers and platforms tick based volume that the actual # on the volume bar is less significant as the OVERALL relativity of the said bars SIZE in relationship to the preceeding bars on the "left of the chart"

4. So in a sense on a 1 hr bar my broker may have 3,879 as Volume- Your broker may have 4,856. If we compare the relative volume with the background- we are still able to make trading decisions via VSA.

5. I do believe that tick volume of any nature in Forex (because it is the best we are able to attain) is useful as long as we are looking at it in relative terms based on where you trade.

 

Sledge

 

Sledge consider getting the GTIS feed from Esignal. They aggregate tick volume from a number of broker dealers and ECN's. It's $100 per month I believe but would easily pay for itself if you trade enough. I have never traded forex, but ppl. that do, that I have chatted with, said it's pretty much the gold standard if you are going to trade forex. Now with that said Esignal has had some issues recently in fast moving markets with data lag on ES and CME in general so take that for what's it worth.

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Dan-

Excellent- great to know, well I have been in discussions for a broker move soon to an ECN anyways. This would require me to get my own charting and datafeed- and Esignal is on the list to consider.

Thanks.

Sledge

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Ok VSA'ers-- I have a riddle for all of you.

 

Posted below are (2) charts a GBP/USD 1 Hr and a GBP/USD 4 hr.

 

On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming.

On the 4 Hour chart you see an upthrust after a nice start to the downward move. Which is indicative of further decline.

 

So if you were to take a trade looking at these charts. Would you go long? Or would you go short?

 

Looking forward to how everyone reads and analyzes this to come to a conclusion!

 

[ATTACH]5959[/ATTACH]

 

[ATTACH]5960[/ATTACH]

 

 

Still no takers on this? Wow, I'm stunned really. Thought it would be a great discussion at a live edge of a market. I decided to use the 1 hour timeframe and take a quick long at 1.9717

Closed out after the test followed by upthrust formation at 1.9745.

Quick and dirty for a 28 pip grab.

Sledge

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Still no takers on this? Wow, I'm stunned really. Thought it would be a great discussion at a live edge of a market. I decided to use the 1 hour timeframe and take a quick long at 1.9717

Closed out after the test followed by upthrust formation at 1.9745.

Quick and dirty for a 28 pip grab.

Sledge

 

Hey Sledge, maybe no takers because it doesn't fit anybody's personal style for long or short at the moment of your chart. From where it was sitting I wouldn't take any postition. I'd have to see how it acted in real-time.

 

FX is funny to. Do we really want to include bars from the Asian session and call them no demand or no supply just because Asians weren't interested in Cable? If I were trading cable then I'd be interested in what London and NY are interested in. Tradeguider doesn't teach it that way but it's just something I'd give more weight to.

 

How about you post a chart and tell us what you would do. I think that would get more feedback.

 

cheers mate

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JJ-

Fair enough. I know some folks have asked to have "live edge" trading examples if at all possible. I figure if it was "I'd take no position" accompanied by reasoning for such- would be a benefit to anyone trying to navigate through this muddy time on the GBP.

 

You are correct that the Asian session is always the slow time in the Cable market, but if Tom Williams states that "The professionals never sleep" I can only assume that we must give some weight to the movement- no matter how little the volume is.

 

Sledge

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Ok VSA'ers-- I have a riddle for all of you.

 

Posted below are (2) charts a GBP/USD 1 Hr and a GBP/USD 4 hr.

 

On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming.

On the 4 Hour chart you see an upthrust after a nice start to the downward move. Which is indicative of further decline.

 

So if you were to take a trade looking at these charts. Would you go long? Or would you go short?

 

Looking forward to how everyone reads and analyzes this to come to a conclusion!

 

[ATTACH]5959[/ATTACH]

 

[ATTACH]5960[/ATTACH]

 

Ok, this is just priceless.

 

First - no responses from anyone even taking a stab at whether you go long or short here.

 

Second - the fact that the question is - should I go long or short here - just emphasizes how arbitrary this VSA stuff really is. It's either a long or short and it should not be hard to figure out which one IMO.

 

I have NO IDEA the answer to your riddle, but it sure is entertaining to read yet another post in this thread about whether to go long or short...

 

This VSA thread is quite the interesting read from afar. Seems like a lot of the blind leading the blind... is anyone actually using this stuff in real-time? If so, where are they at?

 

I just can't get over the 'do I short or go long here' posts... If that's difficult, good luck managing your stops and profit targets.

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Bf-

Well I actually posted this so that people could attempt to answer what they see. I wanted to spark some conversation about what people saw and how if they were faced with this chart- what would their move be?

 

JJ stated he would take no trade.

I happened to go long but CAREFULLY long

 

I wouldn't say that because it failed to spark the conversation I hoped for, that VSA should be written off as a form of technical analysis.

Sledge

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Bf-

Well I actually posted this so that people could attempt to answer what they see. I wanted to spark some conversation about what people saw and how if they were faced with this chart- what would their move be?

 

JJ stated he would take no trade.

I happened to go long but CAREFULLY long

 

I wouldn't say that because it failed to spark the conversation I hoped for, that VSA should be written off as a form of technical analysis.

Sledge

 

I guess I don't understand how you can't tell if you should go long or short. That's about as elementary as trading can get - long, short, no action - and throughout this thread there are examples of people not sure which one to do! And it's all about VSA.

 

From an outsiders view, that would say this VSA thing isn't nearly as clear as some may think it is, ESPECIALLY in real-time. And in the end, that's all that counts. After the fact charts do not put real $$$ into an account.

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I guess I don't understand how you can't tell if you should go long or short. That's about as elementary as trading can get - long, short, no action - and throughout this thread there are examples of people not sure which one to do! And it's all about VSA.

 

From an outsiders view, that would say this VSA thing isn't nearly as clear as some may think it is, ESPECIALLY in real-time. And in the end, that's all that counts. After the fact charts do not put real $$$ into an account.

 

I wasn't asking for personal advice. I saw a nice real live situation present itself while I was flicking through my timeframes and said- Hey this would be a good lesson for others to try and figure out as well.

 

Since it was a real-time, live edge chart(s)- my basic question was if you were sitting there, you saw what I posted, what would you have done? I may have gotten a range of answers such as:

 

A. I'd wait for a higher volume downward move through the 1.97 area and confirm to go short

B. I am a scalper and I would have used the 1 hr chart to go long, watch the bars form and manually exit.

C. I would have done nothing since their was low volume and it was the Asian Market.

 

It was more of a curiosity as to what others see when looking at the very same information. I made my trade, banked $ and was happy. Guess I thought others may have seen it totally different and taken their own path.

Sledge

Edited by Sledge

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      Hey guys , what are the main things you look for to detect if the consolidation area is accumulating or distributing ? 
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      3) sometimes in market high / low it becomes re-accumulation  / re-distribution
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    • Date: 17th April 2024. Market News – Appetite for risk-taking remains weak. Economic Indicators & Central Banks:   Stocks, Treasury yields and US Dollar stay firmed. Fed Chair Powell added to the recent sell off. His slightly more hawkish tone further priced out chances for any imminent action and the timing of a cut was pushed out further. He suggested if higher inflation does persist, the Fed will hold rates steady “for as long as needed.” Implied Fed Fund: There remains no real chance for a move on May 1 and at their intraday highs the June implied funds rate future showed only 5 bps, while July reflected only 10 bps. And a full 25 bps was not priced in until November, with 38 bps in cuts seen for 2024. US & EU Economies Diverging: Lagarde says ECB is moving toward rate cuts – if there are no major shocks. UK March CPI inflation falls less than expected. Output price inflation has started to nudge higher, despite another decline in input prices. Together with yesterday’s higher than expected wage numbers, the data will add to the arguments of the hawks at the BoE, which remain very reluctant to contemplate rate cuts. Canada CPI rose 0.6% in March, double the 0.3% February increase BUT core eased. The doors are still open for a possible cut at the next BoC meeting on June 5. IMF revised up its global growth forecast for 2024 with inflation easing, in its new World Economic Outlook. This is consistent with a global soft landing, according to the report. Financial Markets Performance:   USDJPY also inched up to 154.67 on expectations the BoJ will remain accommodative and as the market challenges a perceived 155 red line for MoF intervention. USOIL prices slipped -0.15% to $84.20 per barrel. Gold rose 0.24% to $2389.11 per ounce, a new record closing high as geopolitical risks overshadowed the impacts of rising rates and the stronger dollar. Market Trends:   Wall Street waffled either side of unchanged on the day amid dimming rate cut potential, rising yields, and earnings. The major indexes closed mixed with the Dow up 0.17%, while the S&P500 and NASDAQ lost -0.21% and -0.12%, respectively. Asian stock markets mostly corrected again, with Japanese bourses underperforming and the Nikkei down -1.3%. Mainland China bourses were a notable exception and the CSI 300 rallied 1.4%, but the MSCI Asia Pacific index came close to erasing the gains for this year. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.vvvvvvv
    • Date: 16th April 2024. Market News – Stocks and currencies sell off; USD up. Economic Indicators & Central Banks:   Stocks and currencies sell off, while the US Dollar picks up haven flows. Treasuries yields spiked again to fresh 2024 peaks before paring losses into the close, post, the stronger than expected retail sales eliciting a broad sell off in the markets. Rates surged as the data pushed rate cut bets further into the future with July now less than a 50-50 chance. Wall Street finished with steep declines led by tech. Stocks opened in the green on a relief trade after Israel repulsed the well advertised attack from Iran on Sunday. But equities turned sharply lower and extended last week’s declines amid the rise in yields. Investor concerns were intensified as Israel threatened retaliation. There’s growing anxiety over earnings even after a big beat from Goldman Sachs. UK labor market data was mixed, as the ILO unemployment rate unexpectedly lifted, while wage growth came in higher than anticipated – The data suggests that the labor market is catching up with the recession. Mixed messages then for the BoE. China grew by 5.3% in Q1 however the numbers are causing a lot of doubts over sustainability of this growth. The bounce came in the first 2 months of the year. In March, growth in retail sales slumped and industrial output decelerated below forecasts, suggesting challenges on the horizon. Today: Germany ZEW, US housing starts & industrial production, Fed Vice Chair Philip Jefferson speech, BOE Bailey speech & IMF outlook. Earnings releases: Morgan Stanley and Bank of America. Financial Markets Performance:   The US Dollar rallied to 106.19 after testing 106.25, gaining against JPY and rising to 154.23, despite intervention risk. Yen traders started to see the 160 mark as the next Resistance level. Gold surged 1.76% to $2386 per ounce amid geopolitical risks and Chinese buying, even as the USD firmed and yields climbed. USOIL is flat at $85 per barrel. Market Trends:   Breaks of key technical levels exacerbated the sell off. Tech was the big loser with the NASDAQ plunging -1.79% to 15,885 while the S&P500 dropped -1.20% to 5061, with the Dow sliding -0.65% to 37,735. The S&P had the biggest 2-day sell off since March 2023. Nikkei and ASX lost -1.9% and -1.8% respectively, and the Hang Seng is down -2.1%. European bourses are down more than -1% and US futures are also in the red. CTA selling tsunami: “Just a few points lower CTAs will for the first time this year start selling in size, to add insult to injury, we are breaking major trend-lines in equities and the gamma stabilizer is totally gone.” Short term CTA threshold levels are kicking in big time according to GS. Medium term is 4873 (most important) while the long term level is at 4605. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 15th April 2024. Market News – Negative Reversion; Safe Havens Rally. Trading Leveraged Products is risky Economic Indicators & Central Banks:   Markets weigh risk of retaliation cycle in Middle East. Initially the retaliatory strike from Iran on Israel fostered a haven bid, into bonds, gold and other haven assets, as it threatens a wider regional conflict. However, this morning, Oil and Asian equity markets were muted as traders shrugged off fears of a war escalation in the Middle East. Iran said “the matter can be deemed concluded”, and President Joe Biden has called on Israel to exercise restraint following Iran’s drone and missile strike, as part of Washington’s efforts to ease tensions in the Middle East and minimize the likelihood of a widespread regional conflict. New US and UK sanctions banned deliveries of Russian supplies, i.e. key industrial metals, produced after midnight on Friday. Aluminum jumped 9.4%, nickel rose 8.8%, suggesting brokers are bracing for major supply chain disruption. Financial Markets Performance:   The USDIndex fell back from highs over 106 to currently 105.70. The Yen dip against USD to 153.85. USOIL settled lower at 84.50 per barrel and Gold is trading below session highs at currently $2357.92 per ounce. Copper, more liquid and driven by the global economy over recent weeks, was more subdued this morning. Currently at $4.3180. Market Trends:   Asian stock markets traded mixed, but European and US futures are slightly higher after a tough session on Friday and yields have picked up. Mainland China bourses outperformed overnight, after Beijing offered renewed regulatory support. The PBOC meanwhile left the 1-year MLF rate unchanged, while once again draining funds from the system. Nikkei slipped 1% to 39,114.19. On Friday, NASDAQ slumped -1.62% to 16,175, unwinding most of Thursday’s 1.68% jump to a new all-time high at 16,442. The S&P500 fell -1.46% and the Dow dropped 1.24%. Declines were broadbased with all 11 sectors of the S&P finishing in the red. JPMorgan Chase sank 6.5% despite reporting stronger profit in Q1. The nation’s largest bank gave a forecast for a key source of income this year that fell below Wall Street’s estimate, calling for only modest growth. Apple shipments drop by 10% in Q1. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • The morning of my last post I happened to glance over to the side and saw “...angst over the FOMC’s rate trajectory triggered a flight to safety, hence boosting the haven demand. “   http://www.traderslaboratory.com/forums/topic/21621-hfmarkets-hfmcom-market-analysis-services/page/17/?tab=comments#comment-228522   I reacted, but didn’t take time to  respond then... will now --- HFBlogNews, I don’t know if you are simply aggregating the chosen narratives for the day or if it’s your own reporting... either way - “flight to safety”????  haven ?????  Re: “safety  - ”Those ‘solid rocks’ are getting so fragile a hit from a dandelion blowball might shatter them... like now nobody wants to buy longer term new issues at these rates...yet the financial media still follows the scripts... The imagery they pound day in and day out makes it look like the Fed knows what they’re doing to help ‘us’... They do know what they’re doing - but it certainly is not to help ‘us’... and it is not to ‘control’ inflation... And at some point in the not too distant future, the interest due will eat a huge portion of the ‘revenue’ Re: “haven” The defaults are coming ...  The US will not be the first to default... but it will certainly not be the very last to default !! ...Enough casual anti-white racism for the day  ... just sayin’
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