Asian Business Issues - Rants & Raves, Illusions & Collusions etc.
Early last week we went long the Usd/Euro,Aussie,GBP and Swissie.This morning we exited all with substanstial profits.Our short S&P we just added to average 1631.After all our hard work in the FX,we are still down as we are getting creamed in the indexes.Our short Usd/Yen average 101.75 was filled Friday and yesterday,is still active and at a loss of 75pips as of now.The only consolation is that we are still in the black for this year.
This market has gone bonkers like the energizer bunny.Fund managers who missed the run up,waiting for the correction that never came have thrown in the towel.They are jumping in heads first chasing the markets.Central bankers are trying to out do each another in cutting interest rates.The greenback is on a roll.A higher greenback means when big businesses imports their overseas profits it will not be as good as when the dollar was falling off bed.Eventually the markets will force the hands of the central bankers.And the Pigg's nations will come back and haunt the markets,with the China property markets falling off the cliffs.The market is going parabolic and parabolic markets do not last long.And when it finally falls the bottom will come off.
A few more days like this bunny is going and we might have to raise the white flag or book a ticket to the poorhouse.We are already at breakeven for the year.After thirty something years in the market,now I understand what 'the trend is your friend' means.Go figure.
What I like in trading is one way street markets.The majors are falling like nine pins against the greenback.But nothing beats the stock markets and the Usd/Yen.In the stock market buy on a dip and you will never lose.Because you will be making profits tomorrow or a few days later.The markets will pull back on a minor dip and rally back to higher highs.A very sure bet.At least that is what the consensus says,lots of room to go higher.Usd/Yen is even better.Pullbacks of a hundred or two hundred pips and a rally of two hundred to four hundred pips will follow.Another sure bet.COT Usd/Yen longs is at extreme highs.Bullishness and euphoria are at extremes as there are no bears in sight.An early sign of market tops.I think that it will be very soon.That is the reason I went flat our profitable long Usd trades.The need to have excess funds in our account and not worry if the S&P were to soar thirty or fifty pts and have margin calls.I will have to sweat this two trades out.Let the bulls have a fiesta and dance all they like.When the last buyer has bought watch out.
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