The Libor 3-month rate (Libor is the rate at which London-based banks say they can borrow) continues higher, now exceeding highs from a year ago. The RSI prints a smidge higher as compared to summer 2010 so it wants to see another higher high after any pull back occurs. During the run up prior to the summer 2010 equities market troubles, price crossed up thru the 20 MA, then up thru the 50 MA, then the 20 MA crossed up thru the 50 MA, all are bullish (upside) signals. Note how the 20 MA is now poised to move above the 50 MA so keep watching for this bullish confirmation.
The conclusion is that the Libor rate will continue up into a creschendo a la August 2010 when Chairman Bernanke pulled the QE2 card. Thus, the 0.50-0.55 range serves as a target as to when QE3 will be announced. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.
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