AUGUST IS A NEW ERA

August13,2009



THE NEW ERA OF TRADING AND RISK PROFILING?

Perhaps the above question should be answered by the end of this week.
It seems that people have started showing the pole of trading by basic and really standard fundamental.
so it would be wise to recommend that not to hold position intraday. close out after every fundamental new fade out.

the fact is that, there is no more safe haven for dollar at the moment.
those speculators took the money on the table because they are really quick and fast.genious.

so, it is possible for traders to follow this trading technique ":to be base on fundamental"

the euro, pound and nzd, aus and chf as well as canadian dollar gains on the 'fundamental data published for U.S." which include the retail sales, monthlyt unemployment rate, core retail sales
and import price also drop.. even worse than expected.

instead, the data from europe region showed better than expected ; german prelim gdp, flash gdp, french prelim gdp were the highlights.

however, there is no fundamental daily data is available for the pound, but pound showed rally action 100 points plus. obviously the 'market mover' is the fundamental data of dollar weakness.

its is believed on the previous day or the morning earlier, that traders and investors was waiting for the Fed to take action regarding interest rate and QE program (bailout)... . since the Fed gave the optimistic approaches to recover the economy, by slowing the buying of treasuries, and keep the interest rate at lower benchmark for sometime this year, traders and investor do understand that as a signal showing U.S is in the phase of recovery (because now they are even courage to Stand Alone without bailout for a few month) and next coming should (or at least end of this year) be the exiting step over the recession. during the day, the demand for treasuries and dollar dropped to result from traders and investor start to chase after the Higher yielding investment and currencies , ; as per they said, to avoid their return on the investment in the future affected by the inflation that is seen to increasing.

Fed step to slowing the buying of treasuries are part of the plan to slow the inflation in the possible coming future. But investor acted fast to take advantage of the situation.



we are recovering. but ....bubble.. oh. ooo


THE WORST IS OVER FOR THE ECONOMY?

major stock index in Asia gained with NIkkei up 0.8 percent as the Fed stated on the FOMC meeting that the worst is over for the economy.
what is seen taking place in the market people are trading based on the fundamental data obviously what came out from the Economic Calendar.
: todays data came out that very bearish for the dollar and some bullish point for the higher yielding currency.

bad data for U.S as per the drop in retail sales, increasing in unemployment rate, weak core retails and import prices have weaken the dollar. The U.S dollar is not taken as a Safe Haven currency anymore, since the recovery over world financial is taking place firmly provided the meeting for FOMC is hawkish for the economy. Equity markets are running high, all over the world but the dollar is sliding down.
The fact is fundamental trading is easier to see and handled. Data come out, you trade, effect fades you go out....but how would you gauge that..??