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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Forex Fiat DX - Charting Imagination 0 comments
    Feb 9, 2013 8:28 PM

    Saturday 9 February 2013

    Federal Reserves Notes, [FRNs], are not "dollars," despite the
    purposefully deceptive mislabeling of them, [mis]using that noun. FRNs are commercial debt instruments, issued by the privately owned
    Federal Reserve Bank whose owners are responsible for the largest
    Ponzi scheme [un]known to man. Some get it, the vast majority do not.

    [For those incapable of dealing with facts that shake their reality,
    you can skip to the charts, below, or just skip this commentary in
    its entirety. The Rothschild Formula, what we call the Great Ponzi Scheme, is unraveling.]

    For those who cannot accept the fact that a lawful dollar is NOT a
    FRN, those fiat Bernanke Bux, write to him, and/or your
    CONgressman/woman and ask if a Federal Reserve Note is a lawful
    dollar. Of course, FRNs, are not Federal, they are issued as commercial debt instruments by a privately owned corporation; there are no
    reserves, FRNs are not backed by anything; nor are FRNs even a Note,
    for a Note is a promise to pay a certain amount in a certain time, and
    FRNs make no such promise. Other than that, people accept them for
    what they are not. Go figure.

    What is so sad is that 99% of Americans do not even know what a
    lawful dollar is, not that they exist in circulation anymore. What exists
    in circulation now is the dollar's mirror replacement. When you look in a mirror and raise your right hand to tell the truth, which hand is the
    mirror holding up? That is how your federal government works.

    Remember two things: FRNs are debt, and debt can never be money,
    by law. Draw your own conclusions.

    As fiat, there is nothing backing FRNs, just as there is nothing backing
    Monopoly money. Both are intrinsically at par with each other, yet one "enjoys" what the forces of imagination give them: a power unjustified.
    It is ONLY one's imagination that gives the fiat "value," and that defies the imagination of those not susceptible to the cognitive dissonance spell FRNs hold for its holders.

    It is ironic that something which exists due to the imagination has
    reached volume proportions that have literally become unimaginable.
    Consider this, if you had been alive since the birth of Christ and spent
    $1 million PER DAY from then to the present, over 2000 years later,
    you would not have even spent $1 trillion dollars, yet. This is why we
    find it so hard to chart figments of imagination, which is what fiats
    are but much of the Western world uses them as a benchmark for
    accomplishment, [something that is quickly changing as China and
    Russia are creating world trade that EXCLUDES the fiat].

    It has taken quite some time, but there are those who have begun to
    recognize that the Emperor [NWO and their central banks] is wearing
    no clothes. In another bit of irony, even the fiat is being replaced by computer digits, another form of imagination removed from the faux
    "original." It gets curiouser and curiouser in the land of fiction.

    The above had to be stated lest anyone falsely presume we endorse
    the existence of fiat in any form. The American Dream to accumulates
    them, and now their digitized version, as well, will one day turn into a
    nightmare for those in their hot pursuit. The adjective, dollar, has been [deceptively by design] turned into a noun, and a fiat one at that.
    This fictional existence in one's mind is what we see in the charts, and the fact that they are fictional is why we choose not to trade them
    and participate in the fraud.

    As Chartists, this is what we see, or what central bankers allow people to see.

    Since its peak, over a decade ago, and despite its use to "solve" the
    economic problems that have arisen from its misuse, the fiat remains
    entrenched in a down trend. From its last evidence of support in 2008, five years later, price has gained very little.

    Sideways activity can be accumulation, in preparation to go higher, or
    distribution, a pause following a move lower. A bias puts us on the side that what is on the chart is a form of distribution. That assessment
    can be wrong, but we know the burden of proof is on buyers to say otherwise.

    DX M 9 Feb 13

    The smaller time frame portion on this chart shows a trading range.
    The section from August 2011 to July 2012 was in an up trend, but
    that has evolved into a trading range, and a weak one at that, failing
    to rally above a 50% retracement between the high at C and the low
    at D. As a general guide, an inability to rally above a half-way area is
    the market telling us the move is relatively weak.

    The two higher time frames suggest this fiat can yet go lower. We
    next look to see if there is synergy on the lower daily time frame.

    DX W 9 Feb 13

    The daily is in a trading range. The upper area is where the rally failed
    at the 50% area. There have been three "touches" of the lower
    support, the most recent being a potential failed probe lower/and
    double bottom. One problem is the fact that we see lower highs since
    the November high, and that is the market saying rallies are weak.

    The low was marked by an increase in volume and a close about mid-
    range the bar, an indication that buyers were meeting, and stopping
    every effort of sellers to push price lower. A rally followed, confirming
    the effort of buyers was successful, at that point. The next focal area is Thursday's sharply higher volume rally.

    Volume is the energy behind any move. Ostensibly, high volume
    accompanying a wide range rally is positive. A look at the intra day
    composition will confirm that potential, or not. If the rally should fail
    and lead to another retest of potential support at the 70 level, a 4th touch could break through and continue lower.

    DX D 9 Feb 13

    We know the monthly and weekly charts are showing weakness. The daily is struggling. This 60 minute intra day chart does not bode well
    for the current rally. As stated, the burden of proof is on buyers. Are they meeting that burden? We see developing market activity as negative.

    With volume the energy behind a move, an inspection of the three
    highest volume bars on the 7th shows the "energy" level increased on
    each successive bar, but each corresponding price bar narrowed. The
    market is telling us that the increased effort of the buyers was being
    met, and over-taken by efforts from sellers. We know that because it
    was selling that prevented the rally bars from increasing to higher
    levels. Confirmation follows on Friday, the 8th, when volume decreased and any attempt to rally went nowhere. Note the smaller ranges, a
    sign that demand was just not there.

    Given this assessment, a look back at the daily shows obvious
    resistance at the 81 level, a place to sell on weak rallies, but should
    any rally attempt reach that level, it has to show small ranges and decreased volume.

    There is also a wide range bar down with a high at 80.70, the 7th
    trading day in January, and that can also create a resistance area,
    prior to 81. If the character of any subsequent rally proves to be
    weak, it would be a sale for the short side, as would a confirmed
    break under the 70 support level.

    DX 60m 9 Feb 13

    Themes: Dollar, Currencies, Forex
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