DollarMarketMovers.pdf (application/pdf Object)
Thanks to Kathy Lien, Refco's Chief Strategist, for confirming in spades my own market observations of the past few months. Namely, that the market adjusts to economic news releases very quickly, usually within 10-20 minutes of the data release. For the small-time currency trader like myself, this suggests a strategy I call 'fishing'.
You have to be at the fishing hole ready to go, just before the news event, but not yet fishing. Then, with the release of the news, quickly throw your line in the water depending in which way the data indicates the market will go. Or which way the market is going as revealed in the first five minutes. You should have enough excitement during the succeeding 15 minutes to equal any fishing. Pull your line out. Maybe throw it in again later.
Sunday, May 15, 2005
Thursday, May 05, 2005
FRB: Speech, Greenspan--Derivatives markets--May 5, 2005
FRB: Speech, Greenspan--Derivatives markets--May 5, 2005
Read Chairman Greenspan's speech on derivatives here. Click on link.
Read Chairman Greenspan's speech on derivatives here. Click on link.
FT.com / Currencies - Asian currencies withstand Chinese talk
FT.com / Currencies - Asian currencies withstand Chinese talk
Mr. Johnson puts forth the common wisdom regarding the Chinese renminbi revaluation and its effect on the currencies. See link.
"The yen drew support from continuing speculation of a renminbi revaluation by China, a move seen as heralding a period of broad Asian currency strength. . . .
"However, with the yen having already rallied from Y108.80 against the dollar in the past four weeks, Chris Towner, consultant at risk manager HIFX, argued it could be a case of 'buy the rumor, sell the fact.' The yen may have already staged its Chinese revaluation rally and could weaken when Beijing finally moves."
Time will tell, meanwhile last Friday's Commitment of Traders report from the CFTC shows the commercials are long the yen by about 31,000 contracts on the Merc. Moi? I'm sitting on the sidelines until after tomorrow's non-farm payroll report.
Mr. Johnson puts forth the common wisdom regarding the Chinese renminbi revaluation and its effect on the currencies. See link.
"The yen drew support from continuing speculation of a renminbi revaluation by China, a move seen as heralding a period of broad Asian currency strength. . . .
"However, with the yen having already rallied from Y108.80 against the dollar in the past four weeks, Chris Towner, consultant at risk manager HIFX, argued it could be a case of 'buy the rumor, sell the fact.' The yen may have already staged its Chinese revaluation rally and could weaken when Beijing finally moves."
Time will tell, meanwhile last Friday's Commitment of Traders report from the CFTC shows the commercials are long the yen by about 31,000 contracts on the Merc. Moi? I'm sitting on the sidelines until after tomorrow's non-farm payroll report.
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