One of my earliest childhood memories was when I was three or four I ate an entire box of Girl Scout Thin Mint cookies. The results were predictable.
Less predictable were the results of this morning’s strong rally in EUR/USD. Upbeat reports from inside Citigroup showed strong operating profits in the first few months of the year and hopes that mark-to-market accounting will be modified helped spur stocks higher as did anticipation that the uptick rule will be reinstated on Wall Street. EUR/USD reached a level where it had bitten off more than it could reasonably digest and low and behold a wave of nausea, err, I mean selling hit the market and soon the market (and the couch) were covered in undigested positions (and cookies, to torture a metaphor).
The hourly chart tells the story: an upset stomach looks to be the diagnosis.
