Carry Trade Softens With DJIA!
By Marek W. Stupka | January 24, 2008
The stunning collapse in global equity markets I mentioned in the “What’s Hot?” section trigerred carry trade liquidation of just about 300 bp…
[ Click on the chart to see bigger picture ] However, as you can see on the 1d chart for the GBPJPY above, the price movement itself was far from a fierce, or unusual, development in the carry trade markets. Impact of the Wall Street meltdown was rather muted…
Notice that this is one of the reasons to trade FOREX and abandon trading risky stocks and stock indexes. The thing is that with stocks you simply never now what happens the next day. There are fierce price collapses like this one. There are market gaps that no one will ever fill. [ click here to see FX advantages ].
On the other hand, spot FOREX, along with certain commodity futures and options, represent the financial market instruments on the opposite side of the unexpected risk scale. Want the conslusion? It is rather obvious: WE ARE IN THE RIGHT MARKET!!
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Carry Trade Throttling Up!
By Marek W. Stupka | May 11, 2007
In the April’s Trader’s Corner, I presented yet another simple technical analysis of the USDJPY weekly chart with continued reversal move. Check it out now!
Scoring again! Net profit 200pip, and still trading conservatively! We have just gotten loaded!
Anyways, as I have already explained twice, USDJPY is a referential pair for the whole carry trade basket. You should also check the price action of other Yen crosses, e.g. the GBPJPY, AUDJPY, NZDJPY, and CHFJPY. Judging by their development, what we see now from the carry is only the “getting started” phase…
There’s still more to come as far as profiting from the carry trade appetite of the hedge funds on Yen-denominated currencies is concerned!
Nota Bene: Once again I have to stress, that what you see above is in fact a very, very limited version of the periodically updated Technical Analysis planning available for my 1-on-1 Students. The information provided here is definitely not intended to form a real trade suggestion, or a signal, and is presented to you as incomplete, and advisory only…
Topics: FOREX Trading Analysis | No Comments »