Wednesday, July 16, 2008

Markets feel the strain....

I wish there were some words of wisdom I could place here to tell you what is going on in the market......But I can't. All I can say is that the markets are extremely nervous, more so then I have ever seen in my career. Stocks are weak, interest rates in the States are going no where soon and the dollar just can't get sold enough. Usually at times like this I would attempt to fade the move, in small amounts (improving my average) as i would think we are due for a correction, but not now. I see little upside in the near term and I think that the pain to "warehouse" the position is to great.

Some possible trades I am looking at (or have small positions on already).

Short Dollars. Against the Euro,Gbp,Aud and Nzd. Also surprisingly against Latam Emerging Markets. I would think these currencies would come under pressure at some point but not right now.

Lower Dollar Rates? The market certainly thinks so but here I think there is a real opportunity as I think a sell off in U.S. Dollar futures could be just around the corner. Not long term but a bit of profit taking.

I guess the best advise I can give is not to get married to anything. Be nimble, take profits quickly and losses even quicker.

Good Luck and Good Currency Trading.

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