The schedule (again and again) Now UNTIL French downgrade = DAX up and up without anyone understanding why. The reason ? Its the LIQUIDITY, stupid. And of course the fact that ALL EUROPEAN BOND AUCTIONS are going perfect. Why ? Cause the banks use the money borrowed from ECB to buy the bonds. And the miracle happens every day. French downgrade = the morons will short everything the 1st day and i assume until the 2nd day intraday. Why? After the downgrade, the 1st day the professionals will sell. The same night TV-news will spread the panic in the old grannies and morons that France was downgraded yesterday, DAX went 5% down, DOW 3% down usw.
So the morning of the 2nd day, the grannies and the morons (the non-professionals) will come to sell. Some idiot shorters will follow. But @ midday the power of the sellers will end and then the markets will stabilize. I assume @ - 2% the 2nd day would be a nice point to step in with FULL long. I bet the 2nd day will close with DAX around 0%. From day no3 and on, the rally will begin. Why ? Cause a downgrade means NOTHING. NOTHING. If the central bank is printing like hell (FED and now ECB), the banks will have plenty of money to absorb any bond sale. DAX will begin to skyrocket. The next auctions will perform perfectly and ALL of you will think
"DAX made it through all this. Italy, Berlusconi, Greece, French downgrade. DAX is powerful. There is NO crisis. I must step in. DAX will reach 8.000 till end 2012"
At this point, sakisglo will short and short and short on your heads. I assume till March, but even I cannot predict exactly cause the conditions change day by day. I cannot give you free lunch. You must make your homework. To THINK. To PREDICT. To SEE THE FUTURE before it happens. But i will back to help you the right time. Cause i trully love Germany and especially German scientists and engineers ( Achtung ! The schedule applies only if we dont have any lunatic from Iran making problems or a tsunami usw.) |