dollar

Will the Bailout Plan Work?

Whew – what a wild week! World stock markets and commodities tumbled, whereas government bonds and the US dollar surged amid mounting fears that the ongoing turmoil in financial markets was foreshadowing a hard landing for the US and Europe.

Now that the bailout deed has been done, attention is shifting to whether the plan will work and break the logjam in the credit markets.

Only 4 things I'll trade lately

While the Feds engineer this "bailout", which it is not, we've been well served staying liquid. This "bailout" is in truth, much more like a margin call that cannot be met by banks. The government then exploits the fear...

New rules going forward

The shorter hold times are serving well, and I'll continue to pull what I can from this strategy. Likewise, diving only in deeper pools is keeping fills reasonable. With quicker trading, one cannot afford much slippage, so keep that in mind before every trade...

No man's land

It's possible I get some very short term setups, but I am careful of what I trade. I'm more likely to get long JPY (yen futures), rather than mess with the constantly evolving game in US equities. I know several traders that scored...

Actions speak louder than words

I think I was 5 years old when I learned that actions speak louder than words. The lawmakers are making it so that anybody with a brain should back away from financial markets. A second lesson learned was to never fight a battle you cannot win. I simply refuse to participate...

Bail-out Mania Hits Financial Markets

These are the quick market stats for the past week: the MSCI World Index up by 0.3%, the S&P 500 Index up by 0.3%, the Reuters/Jeffries CRB Index down by 0.1%, the US Dollar Index down by 1.6% and the ten-year US Treasury Note yield up by 4 basis points.

3 trades to watch today

Too often traders not only have an opinion, but become inflexible. Direction is never a definite, but rather a probability. It's easy after a good day to convince yourself you "know something". Don't get off track...

What I'm doing

Rather than add to the confusion and re-hash the same stories, I'm writing this brief post to share how I'll handle the turmoil. First, current positions are hanging tough, so no action necessary unless stopped out of PGH...

Another day

Stocks are getting smashed again this morning. After reviewing my recent trades, I am comfortable that I executed properly and according to my system. However, I do have one regret. The one theme I have believed in most (lower equities) has been working...

When the facts come out

Americans and their creditors should be irate once the "facts" come out on FNM and FRE. Just weeks ago the CEO's assured the markets they were adequately capitalized, now they are being forced against their wishes to hand over the keys...

3 considerations

After being one of the first websites/blogs to spot the FNM/FRE takeover by Uncle Sam here, I've decided to let others write about the bailout specifics. Suffice it to say, this is nothing more than an attempt to get investors...

Global Stock Markets – We All Fall Down!

Investors not only returned to a shortened trading week after the Labor Day holiday on Monday, but also to a bruising on global stock markets, at least for those with long equity positions.

How to trade around the payroll data

Payroll figures will be released at 8:30 am. Although I don't trade on analysis of the data, I often find market moving numbers to provide a catalyst for entry. One must think of where the opportunity to surprise lies...

Everybody has an edge, but here's what really matters

It's safe to say that just about every trader has several edges, which is to say they have strategies with positive expectations. Too much time is spent on this particular aspect of trading, with much less regard...

What's the next move?

The case for my long side trade in commodities stems from my belief that trends re-exert their forces at some point. This article was originally posted on April 26 of this year, but is particularly applicable in the current environment...