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The Coffee Traders Forum

Re: KC Market
By:Z
Date: Thursday, 8 May 2008, 6:29 pm
In Response To: Re: KC Market (JuanV)

In fast markets in trend 2 and 3-day high/ low points are important, then 5 to 10 and 20 trading high/low points are trend reverse areas.

Today is a 4 trading day high point as you can see I think this suggest we are trying to setup for a longer test of an LPS somewhere, but being that so many times we are just spiking at the lows is a longer term process to move lower I think we should be on guard for something that is being over look.

As I suggested about the CL and GC, and of course the EU market.

World central bankers are holding very large US dollars and they have been buying them in the last 4 years or so, in fact that amount has grown in the 80% area of long DX dollar in the war chest.

They could be setting up for intervention I mention this before, many players today have not seen one and why it could break a lot of markets back at one time, the sentiment is just perfect to move things like a snowball with ice in it down the mountain.

For those not or never involve with one, you may see the EU move 4-6 points (handles) in '1' tick.

I think the KC market has become a leader of sorts for the major bear phase process now, like in grains its the W market etc.

It is not positive to have 1 market hold the line, like the DJI being held up with only 1 strong stock to lead the way.

Have a great evening,

Z