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Citi’s Fitzpatrick - 2 Key Markets: The Euro vs Dollar & Stocks
Today King World News wanted to share with its global readers a portion of top Citibank analyst, Tom Fitzpatrick’s latest report. Fitzpatrick, a 28 year veteran and top analyst at Citibank, which has $1.3 trillion in assets, covered the two key markets, the euro vs the dollar and stocks. Below were his comments with two important charts:
Tom Fitzpatrick latest report:
“EUR/USD is still trading in the recent range. The low last week was a marginal undershoot of the 76.4% Fibonacci retracement against the June 1st lows. However we have not as yet seen a break to the upside. The key level to watch is 1.2748.
A close above there, if achieved, would suggest a stretch higher to the channel top and lows from Feb-April this year at 1.2975-1.30. At this stage that is NOT the bias unless and until we breach 1.2748 on a close basis.
Even if we do stretch higher towards the 1.29 handle, the overall downtrend would not change and we would still expect to see further losses over time towards the sub 1.20 area. A breach of the support levels at 1.2397 (the 76.4% retrace) would add weight to the bearish bias.”
Here is what Fitzpatrick had to say about the stock market: “The price action here is still similar to that seen at the highs in 2007 going into 2008 (see parallel lines). The initial leg down from the Oct 2007 high (1,576) was 10.7%. We then bounced 8.3% before turning lower again and trending down to the 200 week moving average.
This year, the initial leg down from April’s high was 10.9%. Four week’s ago we set an interim low and
bounced 7.6%, so not quite as much but still similar. While the there is still room for a small squeeze up, we ultimately expect a move down to the 200 week moving average (1,136).”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The interviews with Rick Rule, Eric Sprott and Art Cashin ($612 billion UBS) are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Jean-Marie Eveillard (oversees $50 billion), Don Coxe ($538 billion BMO) and Ben Davies by CLICKING HERE.
Eric King
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
July 4, 2012
