About Currency Currents

With Currency Currents, you can stay tuned-in to our current global-macro view and our analysis of key investment themes driving currency prices.

We consistently focus on the key asset classes responsible for the flow of global capital -- including equities, fixed income, commodities and, of course, currencies.

Nothing is off limits to us in this free-wheeling look at the markets. Some days you’ll receive ramblings on trading psychology, while other days we may take an academic approach in explaining esoteric economic issues. Ultimately we have one goal in mind: to help you get a handle on the key investment themes driving global capital flow. Because if you know where the money is going, it increases the probability that your position in the market will be a profitable one.

Who is Jack the Pipper?

Jack Crooks is Black Swan Capital LLC, President and Chief Trading Officer.

Jack is founder and president of Black Swan Capital LLC. He has also operated a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. In addition, he was general partner in a firm specializing in currency futures and commodities trading. Neither firm is now in operation.

Prior to entering the investment arena, Jack worked in various corporate finance positions. He has written extensively on the subject of global currencies and international economics.

Del.icio.us Bookmark

Technorati Favorite

Latest Posts

June 2012

S	M	T	W	T	F	S
					1	2
3	4	5	6	7	8	9
10	11	12	13	14	15	16
17	18	19	20	21	22	23
24	25	26	27	28	29	30

A technical rally ends; fundamentals apply renewed pressure.

Posted 11 months ago | 8:41 AM | 21 Jun 2012

Quote

A fact in itself is nothing. It is valuable only for the idea attached to it, or for the proof which it furnishes.
- Claude Bernard
Headlines

China factories in 8th month of contraction-PMI (Reuters)
Spain borrowing costs soar as EU ponders bank aid (Reuters)
Germany infected by eurozone woe (Financial Times)

Commentary

Without a doubt, risk appetite was hit across the board today. The combination of 1) an empty gesture from the Federal Reserve yesterday afternoon, 2) further turmoil in the eurozone crisis management, and 3) further weak manufacturing numbers in across the globe have helped to renew fears that global recession and asset deflation is around the corner.

Action

Technically, the sour news corresponds with a corrective rally that may have hit resistance that won't again be tested for a while. While the S&P 500 (below) is certainly vulnerable, markets in Europe and Asia are especially vulnerable in the current environment - shorting (or buying put options) on select ETFs like FXI (iShares China), EWI (iShares Italy), or EEM (iShares Emerging Markets) may make sense now. Below is a chart of the S&P 500 we originally put together on June 7 to get an idea of how long risk appetite might drive markets higher; are we done?