THE BIG BUBBLE_QE EFFECTS FROM BEGINNING_NOVEMBRE 2008The Big Bubble ... as every time this time is different ... it's true this time the outbreak was unprecedented...
QE effects from the beginning - start end 2008
S&P(orange) +186% - USD/JPY +22% USD/EUR +15%
Nikkei (blue Mountain) +165% JPY/USD -22%
FTSE100(blue points) +80% GBP/EUR +21% GBPUSD+3%
DAX(green points) +201% EUR/USD -15%
MIB Italy( brown points) +46% EUR/USD -15%
.. also in financial bubbles economic gaps are maintained . Strong correlation between S & P and DAX and the moment when the first QE American had exhausted its strength ( with the devaluation of the dollar vs yen ) , new push came from QE Japanese ABE ( with svlutazione the yen vs the dollar) . Stronger seems the effect of QE UK as a steep and steady growing index tied to a currency like the pound which has always maintained its value both against the dollar and the euro . The Europe is Germany and dax..il benefits from the propagation effects on other markets like Italy ... is ever fail to put and push the economy and to hold this system after inflating a bubble like this...
MIB
ITA40 MAX 2014 vs 2015_+2.50% 283 daysWhile all equity markets ( DAX - SP - and today FTSE 100) are in the highest level of ever index Italian is just 2.50% up from high 2014 with a devaluation of eurusd of 20% ... also financial bubbles reflect some economic fundamentals..the italian economic is stuck at 0 % of GDP , and shows no signs of recovery...MIB index on which to speculate , and sooner or later ( QE effect) short heavily
QE effect on Italy Stock Index MIBBubble from QE on Italy Stock index
Compensation loss index value
The devaluation of the euro is offset by index
06062014 index 22500 eurusd 1:36
180316 index 22500 eurusd 1:05
theoretical value index change at 1.05 is 17500. The QE and the weakness EURUSD have created a bubble in the value of 5000 points.. is not now but in the end the bubbles burst...
Range trading for a mini break out on the Italian MIBMaybe a little labour intensive for some but a safe way to book profit without much risk.
Buy and sell in 2 units at support and resistance. Move stops to protect positions. Take one unit profit at either support or resistance. Wait for break out in either direction. Repeat until breakout. Or leave it alone if it looses it's neatness and starts getting messy.
Low stress trading hopefully :)