Archive for March, 2010

Forex Trading Strategy: One Pip from Victory

Forex Trading Tips: Float like a butterfly, Sting like a bee

Float like a butterfly, Sting like a bee A book that I am currently reading (The Quants, by Scott Patterson) follows the classic path of a Greek tragedy. Man full of hubris (in this case due to his intellectual prowess) believes he has discovered the Truth. Drunk with arrogance from his ability to extract billions [...]

Why Fitch Downgrade of Portugal is So Damaging for Euro

With rating agency Fitch downgrading Portugal’s sovereign debt rating and Germany continuing to whine about bailing out Greece, who can blame forex traders for dumping euros? A flight to quality pushed the euro to a 10 month low against the U.S. dollar and now there is no major support in the EUR/USD until 1.30. [...]

Why the SNB Has Not Intervened in the CHF

For the eighth trading day in a row, EUR/CHF has failed to rally. The Swiss Franc even ended the day at a fresh record high against the euro as traders test the resolve of the Swiss National Bank. This has led many currency traders to wonder What is the SNB Waiting For? Why haven’t they [...]

Economics 101: Keynes vs. Hayek Rap Video

This is sooooo good! I highly recommend you watch this for an entertaining and educational breakdown of Keynes and Hayek’s conflicting economic theories. Kudos for the video

What Japan Post’s New Deposit Limit Means for JPY

This morning, Japan Post Bank announced plans to double their deposit limit from 10 million to 20 million yen. Japan Post Bank is the country’s largest postal service operator and also its largest financial institution. With financial assets of 300 trillion yen or the equivalent of US$3 trillion, their holdings exceed the entire [...]

Forex Trading Tips: A System For Success

A System For Success Last week I wrote, “Each day I attempt to ask and answer only two questions –What’s Happening? And How Will It Affect Price? Get that answer right and you’ll be on your way to being a successful short term trader.” That’s only partially true. Short term trading is never only about [...]

Video Interview: Favorite Trade and Comments on Data

I was on the Business News Network this morning giving my instant insight on the U.S. data and my favorite trade calls.
Click on image to access the video

My Favorite Trade: AUD/NZD Update Plus USD/CAD and EUR/GBP

Last week, I wrote that shorting AUD/NZD is my favorite trade. At that time, I said that if the currency pair rallies back above 1.31, then the uptrend has resumed and my call is wrong. However, AUD/NZD tortured me and came within 2 pips of 1.31 (1.3098) before reversing sharply lower. There [...]

Dissecting the Fed Statement

Here is my dissection of the March 16 Fed Statement
FOMC Statement March 16, 2010
Information received since the Federal Open Market Committee met in January suggests that economic activity has continued to strengthen and that the labor market is stabilizing ( upgraded “from deterioration in the labor market is abating”). Household spending is expanding at a [...]