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The US Dollar/iPod Index
Wednesday, October 10, 2007
This is an amusing way to look at the US Dollar: How much iPod nano does the US dollar buy around the world?
Just over 20 years ago, The Economist magazine launched an index based on a McDonalds hamburger – the Big Mac index – a practical way of assessing whether a particular currency was under or over-valued against other currencies. It was launched as a light-hearted approach to exchange rate theory, but has had a good track record in predicting the direction of currencies.
· The Big Mac index has some limitations, one being that hamburgers cannot be traded across countries. Additionally, the Big Mac index is updated only irregularly. So, in the same spirit as the Big Mac index, CommSec has compiled the iPod index – a comparison of prices for the popular iPod nano music player across the world. Results released today showed that Apple sold 21 million iPods in the past quarter.
· The CommSec iPod index is a similarly light-hearted approach to assess currency movements. And while the initial results are at odds with many analysts, we will have to wait and see. The index suggests that the US dollar has potential to appreciate against a range of major currencies, with the Aussie dollar around 15 per cent over-valued against the greenback.
Country Price
Brazil $327.71
India $222.27
Sweden $213.03
Denmark $208.25
Belgium $205.81
France $205.80
Finland $205.80
Ireland $205.79
UK $195.04
Austria $192.86
Netherlands $192.86
Spain $192.86
Italy $192.86
Germany $192.46
China $179.84
Korea $176.17
Switzerland $175.59
NZ $172.53
Australia $172.36
Taiwan $164.88
Singapore $161.25
Mexico $154.46
USA $149.00
Japan $147.63
Hong Kong $147.63
Canada $144.20
http://bigpicture.typepad.com/commen...-dollarip.html
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Arco
thanks for the chart,i didnt pick up on the gartley at the time but i did see the EURO bouncing off
the long term trend line from start of 06,i didnt have enough courage at the time with the credit crunch etc
in my search yesterday i could not find anything that comes close to the precision a butterfly
offers,and coupled with with a long term trend line as you posted ,i see what you were referring too!
back to the hatchery
cheers
roddy
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Hi Miner,
You havent been posting for awhile,
if my memory serves me correctly you do a bit of flounder fishing, hows that been going?
its windy in Hawkes Bay,so not going out this weekend!
cheers
roddy
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Hi Roddy been sick again so not doing much FX as brain is as thick as a brick,4 chart system working good though.
Just been thinking of going for a flounder as getting a tad warmer to be walking around with a spear,but did go for a scallop the other day,got our limit,cooked some in a nice sauce and the rest the next night in the pan with garlic and butter and a rasher of bacon around them,they go well with a good sausage also.
Eur/jpy been good on my system today,came home to be stopped for a few pips,so went short for a few more,(posted on it's thread earlier).
Never sure if what I post is any help due to not talking charty,but will try to do a few more.
Hope all is well with you and your making some FX $$$.
Cheers
Miner
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hi miner, ive been looking at your u trades this afternoon , pretty impressed you seem to have a system that works , so defintley keep posting .
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so from what i gathered look for a big move on the dailys say a big down move
then watch for suuport and bounce to resistance then trade down to support on smaller
time frame , confirming off other pairs
might follow a trade one night when were both on line with a few beers of course
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Hi Miner,
i hope you throw off your illness quickly and will look forward to you posting again.
good to hear you got your limit on scallops,you must have a good spot somewhere but
dont worry i wont be asking where!
yes i am making a few $$ on fx of late albeit not as quickly as i would like
cheers
roddy
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Ta guys if you set up my 4 charts for eur/jpy you can see the turn points for trades well today,since it turned on the hourly at 166.86 I have been looking at a U back to the low of 166.00,but ok trades along the way.
So usd/jpy will prob test the low also,if so on eur/jpy it's an 80 odd pip U trade.
Cheers
Miner
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Dumbass big moves either way are good to trade (as opposed to sideways rubbish,when sideways sit on your hands),so eur/jpy today big south over night,then a nice bounce,then the turn and now back to test the low of last night.
So if you miss the bounce or are unsure wait for the turn,they can set up nice U trades,while playing these keep the bigger daily picture in mind (daily is one of my 4 charts for each pair).
So after you see the turn and have the U back to the low in mind you can play the smaller U's on the way down (20-30 pip ones today),so always taking the money on the smaller U's on the way down if you go long as the bigger picture is the U to test last nights low.
My system is VERY basic but it works,the KISS system.
Hope that helped.
Cheers
Miner
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VERY important don't get stuck on a plan,ie today I thought maybe back to test high of 167.60 BUT then it turned to set up this U,so be flexible and change plan as the charts tell you,so out of the long into a short and made pips on both.