Wednesday, January 16, 2008
| I am sure this article will inflame some of the opinion leaders out there but I think the real risk for short term traders is a big whipsaw. While it is certainly possible that the market may continue the direction it broke out today - in favor of the USD - there is a big reason or "known unknown" to worry about a big move back down. I am referring to the possibility of intervention by the Fed. Today's movement was driven by an escalation of risk in the market. The USD retail numbers made everyone very nervous about risk in general and carry traders, stock traders and bond investors made their moves. If the Fed jumps in, which has rarely been more likely, and reduces rates mid period confidence will be restored, at least in the short term, and the movement today will be erased. If you are inclined to short the AUD, NZD or USD/JPY it may pay big dividends to have some strong risk control in the form of an option's hedge, tight stop or other contrary position in place. In today's video I will walk through each of the risks that I see for today. To see the video, click here: http://www.pfxglobal.com/index.php?o...889&Itemid=149 __________________ Analysis by Profiting With Forex (PFX) |
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