by Frank Trotter
Daily Pfennig
As I write this edition of the Daily Pfennig® newsletter, I am flying from San Diego to Chicago. The four-hour trip spends most of its time over The Great Plains and The Rockies where straight lines stretch out for miles unbroken in the emptier sections. Today, of particular notice, was a highway. The straight lines divert in places around lakes or mountains or to avoid property lines back when the highways were built.
I am not a financial markets chartist and I don’t rely on charts to forecast future values of assets, particularly in the short term. But, more in a Newtonian sense, I do observe that, much like those highways, many asset classes move in long trends until acted on by an outside influence. Currency prices in particular are influenced by macro-economic and corporate fulfillment transactions that do not change course quickly.