All Aboard the Gravy Train

From Bloomberg online:
Global Strategists Abandoning Bearish Views
(By Michael Patterson and Inyoung Hwang - Feb 2, 2012 12:00 AM GMT+0800)

excerpt:
Just two weeks after saying that investors should “remain cautious,” Larry Hatheway, the chief economist at UBS AG (UBSN), raised his recommendations on global shares and high-yield bonds in a Jan. 23 note to customers entitled, “Wrong, but not too late.”

Amazing....setting ourselves up for the big fall? who cares, get it while it's hot!

FOMC Projections 25 Jan 2012

Should have gone to school. The FOMC projections don't make much sense to me.

Rates are expected to stay low 'til end 2014, and inflation is expected to remain stable 'til then.
Huh? cheap money ==> low inflation?! what gives?

Notes on EUR action

Late 2011, real money sellers weighed on EUR.
Early 2012, real money buyers offer support.

EUR Bounce, Some tgts hit

Interesting news:
- Chosun reports that South Korea's sovereign-wealth fund obtains license to invest in mainland Chinese stock and bond markets


- Lawmakers from Chancellor Angela Merkel’s party are stepping up pressure on Greece as it struggles to meet the terms of its second bailout, saying that a Greek exit from the euro region would be manageable. (Bloomberg)


- ...the exchange rate that would equalise the price of a Swiss Big Mac with an American one is 1.55 francs to the dollar; the actual exchange rate is only 0.96. (Economist)


One more time :)
- The market can stay irrational longer than you can stay solvent - John Maynard Keynes


* EURCHF stopped out as pair dips below 1.2100, no sign of SNB. Stay away from manipulated currencies.
* XAU tgt reached, turned short small. AUD small tgt reached, square. 
*EUR long in play, GBPJPY long small, close stop.