PANIC
Wow....what a day. One of utter panic and it is leaving me to think...What Next?
The meltdown was universal. Usd/Mxn started at 12.4000 and ended the day at 13.20.
Usd/Zar opened at 9.05 closed at 10.7800 ! This is an all time new high. Short date Mexico traded as high as 90% today. Hearing that the Mexican finance minsiter is looking to inject 40billion peso into the local market this morning (lets hope so). This will hopefully allow short dates to trade lower but how low I am not sure. From my conversations it sounds like a few Mexican corps may have defaulted and as such the market needed to cover those short dollar positions, both spot and forward. This of course is all speculation but from the market movements seems logical.
I think from a trading perspective you need to keep positions small and look to take profits and cut losses quickly. This is no time to be a hero.
Good Luck and Good Currency Trading.
Labels: Markets
posted by Banker at
Thursday, October 16, 2008
3 Comments:
Crazy indeed...short USDJPY at the moment and the excursions are nuts. I'm thinking your right about taking profits quickly...I've held my trade for 48 hours now. Getting to be a little rediculous and a reversal is emerging...ugh.
LT
Keep your positions short term ! These markets are the craziest I have ever seen (and I traded through the Asian Crisis in 1997-98). These markets are changing hour to hour. Swings are Big ! I do not think anyone can predict the open from one day to the next. Cut your position size and timeframe down.....at least that is what I am doing.
Banker
yeah keep your positions short term
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