This is about FX markets, note the SNB's decision:

Once upon a time, there was a flea that was living on an elephant. They were happy together in the animal world as the young elephant was running around in the forest, jumping up and down, eating and sleeping well. The flea was happy too as he was feeding with good healthy elephant blood and all he had to do was sit and eat.

But the elephant world was cruel and harsh – other elephants were also trying to feed themselves with the same food that our young elephant was searching.

On the other side of the forest was living a much bigger and older elephant which had a lot of experience in searching and finding food. He was not at all young, fluffy and inexperienced as our young elephant. Instead he was hugely over-sized, with big long teeth and an enormous appetite for food. Nothing would stand in his way when he wanted to feed. He was THE king of all elephants.

Time passed, day by day, week by week, years by years – our young elephant became much stronger, yet inexperienced and a little stupid while the flea grew and grew and grew to an extent that it could barely live on the elephant.

One year, during winter, a weather anomaly nearly destroyed the part of the forest where the old elephant was living. Now, as he was having trouble finding food and given that he was the biggest animal in the forest he never hesitated to come by and start eating our poor young elephant’s meals.

The catastrophe that nearly wiped half the forest was indeed so big that day by day – the food became scarce and all the elephants were suffering. The only ones barely touched by this unfortunate turn of events were our flea – feeding on the young elephant – and the much older and bigger elephant.

But one day, our flea - that was continuously growing – stopped its feeding to look at the poor young elephant. He realized that his host was almost dying of malnutrition and therefore decided to help him.

He said to the young elephant:

-          From now on I will help you! You do not need to suffer because others are mean and came to steal all your food! We will both take the battle to another extent - we will crush the big elephant and we will chase him back to where he came from!!!

The young elephant – still in his youth and without much wisdom said:

-          OK! Thank you – oh mighty flea! Together we should be able to punish the big elephant.

 

And – they were both crushed to death by the enraged big elephant!! 

Note: a flea should never take sides in an elephant battle!

P.S. I wrote this when EUR/USD was standing above 1.40 - shorted EUR/USD took a good profit till 1.38 then lost all reentering long (on a demo ofc. :P).


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