The stock market sold off strongly in the afternoon on Tuesday (Dec. 11).
From its September 30 all-time high of $1.4282, so far this week the euro/dollar exchange rate is down over 200 pips, or two full cents.
This was a week for bickering. The U.S. Senate pushed our Treasury Department to tell China to let its currency float higher against the dollar so that we won't pay as much for the huge amount of goods we buy from China. But China snapped back with its own argument that's the equivalent of a nuclear deterrent. It goes like this: If you try to cut back on your trade deficit with us, then we can just start selling (and stop buying) some of that debt of yours that we hold. Once this argument gets going, it becomes a game of chicken to see who will blink first.
Aircraft disasters are examined in minute detail. When a cause is found, investigators seek causes of the cause as they work back through the "event cascade" that initiated the crash. We do this same after-the-fact investigation of financial crashes and social events like wars, ostensibly in an effort to learn from our mistakes. Generally speaking, we humans do better at understanding the airplane crashes.
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In this exciting new 45-page eBook, Jeffrey Kennedy shows you – using fresh, real-life market examples – how you can use simple, yet powerful, chart reading techniques to improve your trading.