Tomorrow the Fed steals the show announcing its latest decision on interest rates. Forex basics recap: high rates are good for the dollar, low bad. Low are good for stocks, and stocks still have a leadership cap on, meaning the more rate cuts the better for most currencies out there (the carry, the higher [...]
Archive for October, 2007
What to expect tomorrow (psst: the Fed meeting), how to trade it
Posted in Fed, Forex basics, Risk, U.S. dollar, tagged announcement, ben bernanke, dollar, Fed, fed meeting, federal reserve, forex, interest rates, rate cut, Risk on October 30, 2007 | No Comments »
Following up on AUD/CAD - a short term trade set up
Posted in Australian dollar, Canadian dollar, tagged aud, aussie, cad, cross, dollar, forex, loonie, moving average on October 30, 2007 | No Comments »
Last we saw this pair it was heading for a collision with resistance, and now it looks like it is bouncing lower.
Basically the aussie has been softening broadly over the last few days, while the loonie is untouchable. It hasn’t been this high since 1960 it turns out. Wow. Interestingly, some of the aussie [...]
FX open house this week … and you don’t want to miss it
Posted in Education, Forex basics, Open House Webex, tagged Education, forex, forex basics, open house, david settle on October 28, 2007 | No Comments »
Once again: this week David Settle - a friend and fellow analyst on our site - will be hosting a guided tour on Thursday of the Investools FX site during a 90 minute Open House session. This is a Webex session, so you have the luxury of seeing, hearing and interacting (in the last half [...]
Swissies at top of World Bank’s rule-of-law index
Posted in Carry trade, Swiss franc, U.S. dollar, tagged carry, dollar, usd, chf, forex, swissy, franc, Carry trade, wealth, world bank, intermarket analysis, interest on October 28, 2007 | No Comments »
Revisiting “The Secrets of Intangible Wealth, ” and what I’ve been hammering on about franc valuation (under valued and destined for the stars when carrys unwind) and the future of the USD/CHF (down, down, down): notice that the World Bank ranked Switzerland tops in regards to wealth (intangible.) The swissy’s been held down for [...]
Ode to the credit crunch
Posted in Funny, tagged credit crisis, credit crunch, Funny, howard dean and his freaky yeooowl, mortage, sub-prime on October 28, 2007 | No Comments »
This one is a little bizarre guys, but if you want a good chuckle over a 2 minute youtube joke about the credit fiasco here ya go! One of the best parts is the clip from Jim Cramer’s bizarre, infamous manic moment of ranting how Uncle Ben “has no idea how bad it is out [...]
Time to keep an eye on the AUD/CAD
Posted in Australian dollar, Canadian dollar, Gold, tagged aud, aussie, cad, Commodities, dollar, forex, Gold, loonie, Oil on October 27, 2007 | No Comments »
Call it the clash of the titans: the two hottest currencies head-to-head in a pair. The loonie has been outperforming the aussie in the long run. In the past couple of months it’s the other way around.
Let’s keep an eye on the pair. It may just bounce down from long-term resistance and gold could easily [...]
Low on time
Posted in Uncategorized on October 25, 2007 | No Comments »
I’ve been away the last few days and it will continue through tomorrow - sorry for the few posts!
Managing uncertainty with less technical risk
Posted in British pound, Risk, Swiss franc, U.S. stocks, tagged chf, forex, franc, gbp, pound, Risk, sterling, stock, U.S. stocks on October 25, 2007 | No Comments »
When the going gets murky, put some armor on. I can’t help but feel luke-warm about some of the trends going on with U.S. stocks displaying weakness.
Sometimes my armor is reducing my position size, doing shorter term trades, or simply just trading less. You can also hedge your risk by choosing less aggressive pairs. Ones [...]
A carry comparison
Posted in Australian dollar, British pound, Canadian dollar, Carry trade, Japanese yen, New Zealand dollar, tagged aud, aussie, cad, carry, Carry trade, dollar, eur, Euro, forex, gbp, jpy, kiwi, loonie, nzd, pound, yen on October 22, 2007 | No Comments »
Here’s a real quick comp chart to (continually) pound home what I said a few posts ago - if you’re still focused on the GBP/JPY knock it off! Stop it, scram, basta. There are much better pairs to trade for both interest and capital appreciation. As is displayed below (black GBP/JPY is second from bottom) [...]
Everything you need to know about the G7 meeting
Posted in China, Euro, G7, U.S. dollar, tagged China, dollar, eur, Euro, G7, usd on October 22, 2007 | No Comments »
I’m going to make this real easy: forget the G7 meeting and brace yourselves, it’s all about what U.S. stocks started on Friday (well, days before that but things really heated up Friday).
But in case you’re still worried, here’s what happened over the weekend when financial officials for the G7 nations met:
China was put on [...]
Anybody shocked currencies are dropping? I’m not, here’s why:
Posted in Carry trade, U.S. stocks, tagged carry, Carry trade, earnings, forex, google, resistance, stocks, u.s. on October 19, 2007 | 1 Comment »
I’ve been pounding this drum for weeks. I even wrote an article on it a couple weeks ago in our Technical Commentary. Most currencies are positively correlated with U.S. stocks right now, and U.S. stocks look scaaaaary.
Basically they are overbought, on scant good fundamental news (ahem, bubble) and at LONG-TERM RESISTANCE. Watch out! That said, [...]
What is market “liquidity” anyway?
Posted in Carry trade, Forex basics, tagged bank of japan, carry, Carry trade, forex, liquidity on October 19, 2007 | No Comments »
A quick mention of what this is since we brought it up below. Wikipedia has a nice definition of liquidity as we mean it:
The essential characteristic of a liquid market is that there are ready and willing buyers and sellers at all times
With the Bank of Japan keeping rates soooooo low, investors can borrow [...]
Liquidity, Chuck Norris, and carry trades
Posted in Carry trade, Forex basics, Funny, tagged carry, Carry trade, chuck norris kicks butt, forex, stocks on October 19, 2007 | No Comments »
What do these have in common? I’m not sure apart from a funny Blooomsberg article I came across. the author draws parallels between Chuck and the financial markets, and www.chucknorrisfacts.com which is a hillarious website of good humored Chuck Norris jokes. Here’s the first four from the article by Mark Gilbert:
Here, then, is the [...]
