The Efficient Market: The Case Study of New Zealand Dollar

The Efficient Market: 

The Case Study of New Zealand Dollar

In my real time sharing of the latest development on the formation of New Zealand government in my live feed sharing of The Guardian today, as illustrated above the reporters and the "paparazis" on the ground already sniffed the insider hints hours before news of the NZF coalition with Labour-Greens was confirmed. The smart monies and big hands moved the markets sharply as soon as these hints were sniffed, way before news were confirmed as facts. This is a case study and real life proof of The Efficient Markets at work. Do take your time to study carefully.

Cheers. 

And congratulations to those who made money from New Zealand Dollar's sharp sell-off:

  

Donovan Norfolk Ang

NZDUSD: 12 March 2015, Wednesday, 5.45pm Singapore Time

NZDUSD: 12 March 2015, Wednesday, 5.32pm Singapore Time

In the event of any USD healthy correction, NZDUSD is the pair that will execute the best dead cat bounce. 

1. The USD strength was warned by me last year to happen. 

2. The USD strength has executed successfully when no one expected it since my warning.

3 Media worldwide is reporting the fact now, 6-9 months after my call for USD strength. When news are reported in media, they are often stale enough already.

4. Markets will go reverse of what the majority crowd is anticipating now. Hence, USD healthy correction that will wipe out all the weak longs of USD for now. When these weak longs have been wiped out terribly, only then will USD resume its long term uptrend for NZDUSD to go down again.

5. Based on chart, New Zealand Dollar tried to resist falling too much when USD gained strength for the past 9 months. It is the most correction-resistant currency, this means New Zealand Dollar will technically rebound the most in a dead cat bounce. 

6. Note that longing NZDUSD is a counter-trend of the long term trend. So it poses some risk; however, choosing to long the strongest entity during a counter-trend trade offsets the risk as much as possible despite the risk. 

Donovan Norfolk Ang

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NZDUSD: 25 June 2014, Wednesday, 3.33pm Singapore Time

NZDUSD: 25 June 2014, Wednesday, 3.33pm Singapore Time

Chart courtesy of StockCharts.com

Technical Analysis of the New Zealand Dollar Index (NZDUSD) is as per illustrated in Weekly Chart above

Donovan Norfolk Technical Rating:
Bearish

Donovan Norfolk Ang

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