Wednesday, April 2, 2014

Saxo Bank CEO: Short The Euro As It’s A “Currency Of Mass Destruction”

Authored by Lars Seier Christensen (CEO Saxo Bank) via his blog at,
Has The EUR Reached Its Biggest “Sell” Since Inception?
I have to admit that I have been surprised by the EUR’s resilience in recent months…
Readers of my past blogs and editorials elsewhere will know that I think the EUR is a monumentallybad idea. In fact, if it is possible to hate a financial asset, I hate the EUR. It has created countless victims in its trail, de facto bankrupted multiple countries, lost most of an entire young generation in Southern Europe and lead Europe in the direction of a totalitarian super state. So yes, I hate the EUR. May it disappear one day soon, leaving only a sad and frightening memory of an irresponsible, dangerous experiment that is never to be repeated. It will also leave behind gigantic economic and human costs. Butit would be far better to take that unavoidable loss soon, before it becomes impossible to reverse.Recovery will follow much sooner if the root cause of the current malaise is removed.

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Western Digital Corp (NASDAQ: WDC)

Western Digital Corporation, through its subsidiaries, develops, manufactures, and sells storage products and solutions that enable people to create, manage, experience, and preserve digital content. It provides hard drives and solid-state hybrid drives for desktop and mobile personal computers (PCs); and hard drives and solid-state drives for performance enterprise and capacity enterprise markets. The company also offers drives used in consumer electronic solutions, such as digital video recorders, gaming consoles, set top boxes, camcorders, and entertainment and navigation systems in automobiles.
To review Western’s stock, please take a look at the 1-year chart of WDC (Western Digital Corporation) below with my added notations:
1-year chart of WDC (Western Digital Corporation)
Since the beginning of the year WDC has essentially been trading sideways while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. WDC’s rectangle pattern has formed a $90 resistance (red) and an $82.50 support (blue). A break above $90 would also be a new 52-week high.

The Tale of the Tape: WDC is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $82.50, or on a breakout above $90. The ideal short opportunity would be on a break below $82.50.
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Why crude oil could trade over $150

While traders were obsessing over the lack of stock market action in the first quarter, the price of West Texas Intermediate Crude moved over $100 a barrel. It’s a meaningful breakout for black gold which hadn’t found a firm foothold in the triple digits since the third quarter of last year.
Optimists would think the global tensions in Ukraine and the absurdity that was last winter would have trumped Summer Driving Season’s annual increase in the rise of crude. Colorful CME trader Tres Knippa thinks crude is a raging buy at $100.
“There’s been tension in the Middle East since the earth cooled,” Knippa observes in the attached clip, “so I’m kind of counting on that to continue.” As for the much vaunted glut of WTI in the U.S., Knippa sees little evidence of any such thing exists in the pits. “The glut is simply not there and whoever’s models are anticipating that I’d have to disagree with them.”  (more)

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How to Build Your Wealth

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Gold Nearing an Important Inflection Point

Gold was once again knocked for a loop in today’s session as Ukranian issues continue to fade from traders’ minds. There is not much to add to my weekend post noting the various time frames on the gold charts but suffice it to say for now, that gold is nearing an important inflection point centered around the $1280 level.
The market is working lower in the range noted within the rectangle with the -DMI back above the +DMI indicating the bears are back in control of the market. The daily chart is not, as of yet, reflecting a trend lower, just a move back down within a broad range.  (more)

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Chart of the Day - RCS Capital (RCAP)

The Chart of the Day is RCS Capital (RCAP).  I found the stock by soring the All Time New High list for new high frequency in the last month and the stock was right at the top of the list.  Since the Trend Spotter signaled a buy on 12/23 the stock gained 120.06%.

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