October 2010 Monthly Archive

Dollar disappears! Every self-important guru worth his salt knows that.

US GDP was at least as good as expected this morning, taking some pressure off the risk aversion trade and hitting the buck today. And the price action in the dollar-giving back overnight gains and getting hit now-suggests traders see the GDP as evidence QE2 will be at least as generous as their expectations. It is the muddle-through scenario of the Dollar Smile framework Read more

The Keynesian Path-to-Failure Game

I keep saying to JR and David: you really couldn’t make this stuff up if you tried. These guys at the top are supposed to be the “best and brightest” minds we have to offer; if that’s true we should all be building shelters while we can still afford bricks. Read more

I think I Kan. I think I Kan. I think …

Japanese yen intervention: Japanese officials may be awaiting a more substantial dollar correction, but will it be left to Prime Minister Kan and his note card? Or will the Nikkei have the biggest say at the end of the day? A divergence of interest … Read more

A whole lot of cleansing going on …

Yesterday it looked as though the bottom was going to come out from under the euro and the Australian dollar. But when the US session opened up and stocks made new highs, well, the euro and Australian dollar were dragged higher too. Read more

Looks like some topping action, as in “US dollar correction”?

Lots of topping patterns (at least if one is looking for such evidence) seems to be on display after Friday’s close and big dollar reversal (dealers feasting on those dollar sell stops). Read more

Who cares? Who knows?

If you can believe it, the US dollar has gotten hammered in the last 12 hours — the euro and pound up over a percent at their day’s highs; the Australian dollar coming very close to US dollar parity. Read more

What do we know and what do we think we know?

JR and I are always amazed at the hubris of so-called “market gurus.” You know them when you see them. They use terms such as “it will go to xyz” as they discuss future prices of an asset. Read more

Never Make the First Move

Unless you’re a good lookin’ dude (like Pip Surfer – holler!) who’s trying to win over his lady crush, never make the first move. What we mean by this is that you shouldn’t always jump in when you see the … Read more

Trade Like a Dealer

Meet Arnold. Arnold is a trader for Pipfornia, and like many other traders, he has a mechanical system based on breakouts. Arnold even has a special name for it: the Terminator System. He follows his system with rock solid discipline … Read more

This means war.

The currency wars began a while ago–the financial press is now catching on as a theme fit to print. As we all know, China is at the center of this war and the primary aggressor. Read more

A One-Way Bet?

Leading off today is none other than the Commitment of Traders report; we mentioned this in our weekly audio/visual summary provided to our Currency Currents Professional members on Friday. Read more

Candlesticks with Support and Resistance

In this section, we will be looking at these basic candlestick patterns that we have learned in the previous sections to make sound trading decisions. Remember, candlesticks are useless on their own, and you must always consider market environment and … Read more