After 14 months and 4,500 points Detma has turned from SHORT to LONG in EURAUD. The trade generated a 24% on an ungeared basis. It says a bit about the current condition of the AUD if the EUR, currently one of the weakest currencies, can turn LONG against it.
The Detma model continues to benefit from USD strength and is, as at 26/5, up 10.2% for May on a weighted and geared basis. This implies that in general, systematic style CTA funds will be having a great month. It has been a long time between drinks for this style of funds management. After an extraordinarily profitable 2008, systematic trading programs have been chopped around by the uncertainty in the risk on/ risk off trade. Throughout May the risk off trade has been predominant and this has paid off well for trend followers.
This would validate the AUDUSD EWT count of a 4th wave in progress with wave 5 down to 0.7500 imminent.
My posts regarding the USD Hegemony discussed the actions that Europe is trying to take to break the stranglehold that exists on their economies due to their dependence on the USD. As I wrote those posts, I wondered how the US financial establishment would show their displeasure at the temerity of the Europeans in trying to regain sovereignty over their economies. How dare they tinker with the established market fundamentalism which dominates the existing world order?
In its article, Geithner Calls for Action on EU Crisis Plan, CNBC states "He then goes to Berlin on Thursday where no doubt German Finance Minister Wolfgang Schaeuble will get a dressing down for his government's unilateral restrictions on speculative trading."
Yes, it's true. Read it and weep!
Frank
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