Thursday, August 13, 2009

whats goin on on the floor

hey there traders..

whats goin on on the floor

1. the change of trend in trading
what i means is: there is a possibility that the equity market to skyrocket.
however, the currency market is reversed in trend whereby for so long traders has been using high yielding currencies to profit previously, and now not so long. noticing the change of favor in currency, starting on August 7 2009, people are buying the dollar in the first place.

stock has been assessed to be overvalued, therefore, the man in the game is now selling those stock
. however this can be determined hypothetically by 2 options, null and alternate.

alternate is: when the dollar strong, the stock go up
Null is : when dollar strong, the stock tumble

these action is primarily refering to the report of U.S NFP on August 7 2009 whereby the result came out better than expected. these however, contrary to the saying of Ben Bernanke the Governor of Federal Reserve bank ; U.S resident will be losing job up to 10% until 2010.
As it is proved the statement was false, investors and most traders (even speculators) have decided to seek for US dollar in and to reject other currencies. dollar may take place again sometime this year as it is forecasted the Equity market will drop due to over value and the rumour that El Nino is coming to destroy the commodity.(what!! destroy..haaa cudnt find another word) El Nino disaster create ripple effect to the stock market as bad weather result the favor for stock to slide and stock preference to decline in value.panic usually cured by safe haven.

These sentiment is supported by the decision of Bank of England buying additional treasuries 50 billion pound sterling. directly showing the plan of Mervin A. King to solve the Queen countries economy.
it shows that Englands economy is very weak and vulnerable to deflation.
this is not good for the pound however.weak pound and strong dollar again.

about mr trichet, he seems refusing to make up the QE action, for how it seems that Euro really need that bail as per the behind the economic scene. so in the medium coming term as i'd say, euro is going dive again.

there is this forecast that controversy will lead to some division of currency pairs as to be favored.
as for instant, the commodity currency like CAD is likely to hustle against dollar as the oil price is still there to stand tall. the Crosses as well will likey affected as Yen is gaining power based on its fundamental ,plus emerging currency traders that transfers financing the higher yielding currency to Yen instead of dollar.

i have this feeling that currency market will somehow be at the same condition as in the mid 2008 where dollar is the big fish on the table.nice to grab.while others making new lows

just so everyone kno, this is just my opinion,think i cud share with.
so what do you think? or or or..no no no no.. what just happened ws a correction since dollar has BOTTOMED? !@#$%^ damn i'm baddd..

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