There is a potential USD breakdown in play here as we’ve been playing the short side lately – with great success.
Waiting for a bounce before re entering “short USD as well short risk in general” may not even be an option as USD pairs are moving fast and furious this morning.
You leg in……get a couple contracts here this morning long EUR, GBP short USD/CAD etc as to not miss potential “waterfalls” BUT…stay liquid enough to buy additional contracts “if” a bounce occurs over coming days. IT WON”T LAST LONG ENOUGH TO MATTER.
Average in for a medium term hold, or just a “great freakin trade” here short term.
Yellen openly suggests danger in equity prices………bubble popping time?
If you haven’t sold NetFlix by now……ugh.
Watch those little mining companies…lower USD means Gold and Silver UP.
Well despite everything, risk markets moving higher. By the looks of it, we are looking to move higher from these levels. Despite last weeks bond market mini sell off, risk markets labored downwards yet at first sign of bond market stabalization, they ripped up. This is not a sign of a market where there is any fear or a market which is anything but gearing up for a move to all time highs.
I still maintain that in order for JPY to strengthen, it needs to break below usdjpy 118.70. I know these are two “safe” pairs against each other but until this pair breaks below aforementioned level, all JPY pairs will drift slowly higher and risk on will move with them. Commodity pairs are stabilizing and this to will help risk on.
As I said three months ago when Europe started their QE, the lows of last October will not be revisited this year – unless the FED shocks the market with more rate rises than expected (which no one expects) or is the Chinese bullble suddenly bursts. Until then, equity markets in US certainly have way to much support to even move down 3% from current levels.