Following the initiative to make TradingdeGuerrilla be a forum for exchange of ideas and knowledge in the world of financial blogosphere with contributions from readers, Miguel Morales delights us this time with a fable of couples.
Some…. too often, the trees we can not see the forest. When I saw this chart, I was a face of gilipitos I could not go outside all day. It was very clear that Europe would fall and the most representative € more, but we with our grafiquitos of little minutes we did not know anything.
The graph represents the Swiss euro / franc pair and the bottom of the SP500, both weekly chart since 2000 approx. Where we can see that the couple eur / (she) chf versus SP500 (he) walked together, hand in hand like lovers, for nearly 10 years. Divergences begin slowly, one makes its way to the sky as eternal love, the other says yes, they will continue loving each other and together as usual. However the latter walked in tow and increasingly distant from his beloved, with movements of approach-avoidance increasingly languid, would there be another? Would you be in a triangular relationship? It seemed I was hesitant to leave her old love with a new one that no one knew. It was clear that there was a hidden force that weighed as much as his old love triangle that was symmetrical, but we all know and love triangles end. In December 2009 the triangle broke down while the SP500, he had not even triangulated. As we can see in the chart was clear, the couple was broken. It was time to buy and sell Europe America.
Damn, we will not learn ever!
Saludos, Miguel (U235)
postscript, I beg the readers forgive this unusual prose that has come to me today, the truth is that it is written especially thinking of my dear fellow Chat to feel that I do not forget them.