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Friday, July 28, 2006

Paterns 2 and Forex


I posted Patterns 1 months back. I am reposting this because while watching CNN this morning, I heard the US are selling weapons worth 5B to KSA. More to Israel, and probably more to other countries nearby. Another source is, the Asean regions, with NK, playing into the interests of the arms producing countries. Escalation in the middle east? or in Asia? It depends; let me quote again a part of Patterns 1:

One thing's is sure…..the power…..the power waned…its waning day by day. Just look at the deficit! The drop, the flop…is soon. It's unevitable….something must be done! Therefore, I foresee a massive trade in weapons in the coming months. That’s the only way.
Or a higher oil price, or trouble in Asia with North Korea at the center stage.

Hehehe, escalation of the middle east war? would depend on how big the deficit would be, if it would be contained or not. How high the oil prices would be? Well the dollar is tied to the oil, and thus far; no news yet on the Iranian Oil Bourse, which I doubt would happen, as it will be viewed as against international security. So, how high? it depends on how big the deficit would be, if it would be contained or not. Will the NK situation gets worse? well, as I said (kulit mo a) it depends on how big the deficit would be, if it would be contained or not.

So...will remain dollar bull, so long as the world is in turmoil, or the Republicans holds the White House, hehehe.

Thats a very easy trading guide. Unless the Yuan is revalued which was somehow happened by 2% last week. But would a revaluation do the job? I don't think so.

Let us see.