Saturday, June 23, 2007

Up and Down goes the Market

I was looking over my last few blog entries and I see that one week I an calling for the melting down of the markets and the next that the "Party" (yield party that is) is back bigger and stronger. This tells me that the markets MAY be in a holding or revering situation. I know from my own trading that I have been paying the top and selling the bottom more then once this week. This requires me to take a step back. I have cut all of my non core positions. I still have small interest rate risk in Brazil, Mexico, and Argentina and this I will keep (for now) but I feel it prudent to cut the risk down where possible. We are heading into the summer. July 4Th holiday's will be here soon. This means vacation's, staff leaving early, basically complacency. If there will be a lack of market changing information, like I think will occur) then market will begin to grind sideways and yield will once again reign supreme. I could be wrong and that is why I am calling for a more cautious approach but time will tell.




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