WhatsApp, you guys?

Are you as amazed as me about the Facebook deal for WhatsApp for $19 Billion?  Do you not think this is yet another symptom of the exaggerated mis-allocation of funds brought on by the the QE experiment?

Here is a great quote from Peter Schiff:  “Given the size and extravagance of the Facebook deal, it may go down as one of those transactions that define an era (think AOL and Time Warner). Facebook paid $19 billion for a company with just 55 employees, little name recognition, negligible revenues, and little prospects to earn much in the future. For the same money the company could have bought American Airlines and Dunkin’ Donuts, and still have had $2 billion left over for R&D. Alternatively they could have used the money to lock in more than $1 billion in annual revenue through an acquisition of any one of the numerous large cap oil producing partnerships. Instead they chose a company that is in the business of giving away a valuable service for free.”

This is what happens near the end of a mania.

Another symptom is the theft of the Mt Gox  Bitcoins.  Poof!  Into the ether they went.  If anyone thought that exchanging hard-earned fiat money for a piece of code was a good idea, then I have a bridge in Brooklyn to sell them – and I’ll throw in a few Bitcoins!

EURO/USD

It has been in consolidation in recent days as it builds steam for a powerful move, just getting under way.

The wave 1 down is the 5-wave impulse pattern establishing the new trend as down.  The A-B-C is the standard corrective pattern and the recent high is waves C and 2.  We are now in wave 3 down and my major target is the B wave low at 1.35.  I  have much lower targets after that.

We will soon see if I am right – third waves are long and strong and we should see sharp down moves in the next few days.

The US dollar is about to fly.