For two years I’ve heard nothing but the euro is going to parity with the dollar. “They are in big trouble in Europe. Europe is on the brink of disaster.” Blah Blah Blah… They’ve had two world wars in Europe and they have not fallen off the cliff, but everyone wants to be short Europe and the euro.
I was a pit-trader and I have quite a few reasons to take the other side.
1. I hate thinking the same way as everyone else. It is no fun being when you’re right because someone else will claim the glory. I said it first. Blah, Blah, Blah…
2. I hate having the same position as everyone else, because when 100 people are wrong and I am right, the profits come quickly.
3. I lived in London for 12 years in the 1980’s and 1990’s. The Bundesbank loves a strong currency.
4. Interest rates in Europe are much lower than they are in America. IF the whole world starts raising rates like I am anticipating, the ECB has more rate hikes to make as opposed to the Federal Reserve.
5. There is a possible double bottom in place on the euro weekly chart. A trade above the breakout level at 11718 will signal a Double Bottom objective of 12950.
So all that said, if all the traders in the world want to keep on selling the euro currency, I prefer to STAND ALONE and buy it; mind you I am in good company with the Bundesbank.