Friday, October 17, 2008

Chart of the Morning -- USD/JPY Hourly



at this point a move below 100 could well signal a further drop to test the lows of last week. a break of the upward resistance line, on the other hand, would indicate that the world might get a much desired general liquidity rally.

my take? could go either way, obviously. everything is awfully oversold. then again there's just way too many folks counting on a bounce in whatever market they're underwater in. and at this point who isn't underwater? the Deathflation Fairy has planted losses under practically everyone's pillow.

eventually money will come out of metaphorical mattresses and many markets will be revived. but is that happening now? color me skeptical. congratulations to those on the sidelines. cash really is king right now. king for a day at least. first time in my short lifetime.