The Menthalo friend gratifies us on LIESI new perspectives, which I couldn't resist sharing with you...

Sincerely.

L'Amourfou...

By Menthalo – Sleep good people!

NAPM is an economic index of purchasing managers.

Here, he shows US exports in major crisis. The current level has only been reached once in 30 years, during the Lehman Brothers crisis.

In the silence of the lambs, we are in the middle of a major systemic crisis.

Quiet ! You don't have to say it.

Let's not wake up all those who, caressed by a warm summer breeze, doze in the shade of flowering mangroves.

If the small saver is about to get shorn, the Big Capital is willing to pay to try to lose less.

Swiss Treasury Bonds are in such demand that they are breaking new records in negative rates every day.

EURO

The Euro is stuck between two divergent slants forming an open bearish triangle.

When prices stumble on the upper resistance, they are sent back to the support at the bottom of the pattern.

The euro came up against the upper limit on Thursday August 2 and was suddenly sent back down.

The strong rally on Friday 3 should not last. Consolidation seems necessary.

In the lower part of the graph, the RSI shows overheating.

Monetary explanations

When the markets expect a Quantitative Easing from the Fed, the Euro goes up…

When they hope for QE from the ECB, the Euro goes down.

On Thursday, hopeful markets were disappointed by Draghi… but why the rally? See a possible answer below. Overheating found on the RSI Hebdo and Daily of the CAC.

Will this bullish push stop there, with a magnificent double top, stopping on a horizontal resistance and an oblique resistance?

Or are we going to go up again to look for the 3415, the 3437 … or the 3500?

This weekly figure looks almost perfect. We could stop there and start the very long descent around 2500.

Look at the very noticeable difference in RSI between point A and point B.

Prices had peaked and then fallen on October 28, 2011, long before the RSI reached the overheated zone, while the current RSI indicates an overbought phase.

For me, the DJIA and the S&P are still in their “3 peaks and a Dome” pattern, and could end with a double top also this point 27.

For several years, I have been keeping an eye on the files of a large number of traders, each using a particular method of analysis (Elliott, Wolf, fractals, Hurst cycles, etc.). All were surprised by the movements of Thursday and Friday, which do not correspond to anything known.

So what?

What event known only to insiders will be announced this weekend or in the next few days?

Friday the French Banks soared, rising from 8 to 10% during the day

An event would therefore be expected by some insiders that could save our banks for some time yet from bankruptcy...?

Remember the Central Bankers (BoE, BoJ, ECB, etc.) announcing on the same day that they would do everything in their power to save the system… (yes! we are there!).

Remember Jim Sinclair, on July 20, announcing a global QE that would come on a weekend, he even said, “maybe even, this Sunday, July 22”…

This week is Eric Sprott, which announced a similar event coming an upcoming weekend, which may be announced on a Sunday evening by G6 ministers…

Did Draghi make secret promises to Rajoy and Monti yesterday to redeem the debts of states or regions? Secret, which would have immediately toured the financial planet, sending the markets to the zenith? (read Bloomberg). And yet, Germany once again said “No”.

So what? 

Is it a perfect bull trap?

Perfect, since he threw the bearish forecasts of all the analysts off balance, so much so that they went back to “bull”…

For my part, I persist and sign… I remain fundamentally bearish and my positions can hold longer than the system itself.

Or the consequences of this cyber-War?

There is one last possibility, which I have not mentioned:

Remember that Russia and China have the sources of the Goldman Sachs nanotrading program… and that many Banks trading programs have been done in India…

Imagine that these programs had been modified, like that of Knight Capital Corp, but with more subtlety… it would then be normal that no analyst understood the brutal movements of Thursday and Friday. We know that real fortunes have been lost due to the violent back and forth of the Euro.

This theory amuses me enough… and I will be delighted to see the Banksters of Wall Street getting outdone on their own chessboard. ;-)

Source: Menthalo on LIESI

If you want to thank menthalo directly for its many tickets, go through his page, you can take the opportunity to order his latest book: "Gold, Silver and Currency Reform", which you can read carefully during the recession which has just been announced...; )

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