Jack the Pipper

The trend is your friend. Price is the final arbiter. Market prices are reality. If you fail to respect the information contained in those last three short sentences you usually end up trying to find a source of funds to start another trading account.

Since topping out on Monday the euro has been tracking sideways. The likely story is that many traders are awaiting a hint from the ADP Payrolls report due out today …

In Richard Bookstaber’s A Demon of Our Own Design he starts things off with a brief analysis on economic and financial market risk.

It’s usually the case that when we get it right in the markets we surmise its brains, and when we get it wrong its bad luck. In trading, getting it right is what matters, no matter if it’s for the wrong reason–which when you think about it is lucky.

It’s a sad week for the usual demagogues in the US congress (sorry for the redundancy), as global oil companies are reporting lousy earnings.

This week in Currency Currents we’ve discussed some details surrounding China and their ultimate influence on the global economy and investor sentiment. For good reason, everyone seems to pay close attention to China – they’re an economic leader.

I noticed the Chinese stock market fell 5% last night–at least that’s what’s been reported by Bloomberg and others; I actually didn’t notice it really.

Global rebalancing is happening, like it or not. The question is: how will the global economy react when China becomes unhinged? That’s exactly what Jeremy Grantham is calling for; and he expects it could really take market players by surprise.

Emerging markets continue to fly. Many for good reason I suspect. The iShares MSCI Emerging Stock Index has rebounded 50% from its low back in November last year.

As Jack mentioned on Tuesday, we’re in Vancouver speaking at an investment conference. A popular question here, as the case with most conferences and seminars we attend, is: