Archive | November, 2010

Quantitative Easing, U.S. Stocks & Dollar Higher, and Behavioral Trading

Much has been written about the so called “risk trade” where asset class markets – carry currency pairs included – rally steadily while the U.S. dollar goes down, and then fall sharply while the U.S. dollar corrects violently higher. If your trading plan is behavioral based this dynamic is not so much a concern because [...]

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Major Currencies at Crossroad

As we enter the U.S. holiday season the world’s most heavily traded currencies appear to be at a crossroad with all three at monthly structure.  In Figure 1 we see the Weekly U.S. Dollar index chart, with price holding right at the confluence of it’s Monthly Directional line in maroon, and it’s Monthly bear trendline. The Dollar Index [...]

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What you must understand before you trade

This article is a reprint from November 20th, 2010 It is essential that you understand market movement from an investors standpoint first, and that you differenciate fact based analysis from opinions. There is an old industry joke which goes: “How do you make a small fortune trading currencies?” The punch line:  “Start with a big one”.  My [...]

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Population Pyramids & AUDJPY

There is no doubt about it that in a modern society the amount of consumers, savers and investors, i.e.: people, are the most important component of the global business cycle. One tool for capturing this data is the population pyramid. There is a very predictable pattern to demographics in modern times. People grow into consumers [...]

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