Tuesday, February 21, 2017

Follow The Money, Not Central Bankers Or Politicians #Invisiblehand

The Euro, controlled by the invisible hand and not central bankers, politicians or conspiracy-theory groups, is headed lower; it's only a matter of time. While central bankers are trying to hold the 2016 low ahead French Presidential elections, they'll certain fail to reverse the trend and might not be able to control it even a few months.

Politicians make headlines because they're worried about trade. The invisible hand, completely ignored by the headlines, is worried about the financial system that backs the Euro as the debt crisis (and all its consequences) unfolds in 2017. The latter is the driving force behind the distribution and accumulation in the Euro and U.S. Dollar, respectively, (see chart 1 and 2). This 'safe haven' capital flow defined by these trends is driving up stock prices against the expectations of a majority focused solely on domestic interpretations. The Matrix, an unbiased source of information as volatility and emotions rise in the coming months, show us that the Nasdaq 100, Russell 200, and Dow Industrials are the focus of money flows into US stocks.

Chart 1

Chart 2

Headline: Merkel suggests euro is too low for Germany

German Chancellor Angela Merkel suggested on Saturday that the euro was too low for Germany but made clear that Berlin had no power to address this "problem" because monetary policy was set by the independent European Central Bank.

Merkel made her remarks at the Munich Security Conference as U.S. Vice President Mike Pence looked on. They seemed aimed at addressing recent criticism from a top trade adviser to President Donald Trump, who has accused Germany of profiting from a "grossly undervalued" euro.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.