While central banks are expected to cut rates, there is little to suggest that cuts will be able to moderate the pace of global economic deterioration. That said, the Fed cut rates 50bp as expected today. The language in the accompanying statement was as expected, emphasizing downside risks to growth and citing moderating inflation. But importantly, there was nothing to discourage thoughts that the Fed could cut again, as they did not view 1% as a "lower bound". There are forcasts for further cuts down to 0.5% by the January 2009 meeting. The Fed also announced additional swap lines of $120bn, this time with four large emerging markets, bringing the number of swap lines set up in the last year to fourteen. Macro data continued to be weak, despite durable goods orders for September rising 0.8% (cons -1.1%). The August reading was revised down and the last two months together show a weak trend. The upcoming GDP release should show that the US economy contracted in Q3.
Read More...

Tags: Rate Cuts

Hello Pro Traders Club Member

AUD/JPY moves 800 pips from trade call level.

As you recall, i suggested a long trade on AUD/JPY or short JPY on other crosses. Due to the intense nature of the markets recently, i regret that i did not have time to produce a PTC video to explain the trade and its parameters. Any time a trade suggestion is made, in any capacity, there will be blind aspects of the trade to everyone with the exception of the individual who has called the trade, because we all view the market and price action differently.
Read More...

Tags: AUD, JPY

The Dow closed 203.19 points lower at 8,175.77. The S&P 500 fell 27.85 points to 848.92. Equities had spent much of the day in positive territory but plunged in the last half hour, dragged down by energy shares as oil gave up its gains. Oil closed at $63.22/barrel, down 1.45%, having risen as high as $65.77 intraday.
US September new home sales +2.7% m/m, after a 12.6% decline in August (preliminary August -11.5%).
Read More...

Tags: Financial Crisis

Hello Traders,

Start Selling JPY, particularly against high yeilders - Long > AUDJPY

We can start to build some traunches on long AUDJPY starting here at 56.12 and lower only, currently it is NYSE market open, as I write this. Place 0.25:1 gearing on your traunches to 1:1 max (four traunches) risking max 2% of equity on total traunches. Take profit on each traunch separately as price moves above using discretion and price. Today should spike down and we should see an equities rally in the next 5 trading days. Look for carry this position for several weeks to a few months. I will update in Pro Traders Club.

Good Luck with your trading and be careful out there.

Chris

Read More...

Tags: JPY

Hello Traders

Here is a Bloomberg recorded presentation made by Nouriel Roubini, Professor of Economics and International Business at athe Stern School of Business, New Yourk University. Read More...

Tags: Videos

Hello Traders,

Attached is an informative message for developing traders from a student and friend whom i've mentored the past few years.

Daniel's message shares the importance of submitting to the market (a section found in "Face the Trader Within", by Chris Lori) and withdrawing the force of your own opinions from your trading actions. It discusses the importance in believing in oneself and understanding the market to become successful.

I'm very proud of Daniel and all he's accomplished in this business and how much he has contributed to developing traders. This is why i do it.

Enjoy the article!
Chris Lori
Read More...

The wave of contentment inspired by the global rescue packages for banks has faded in similar fashion to any previous rescue "plan" as the market digests the full implications on global economies. The US Treasury's decision to take equity stakes in US banks, totalling up to US$ 250 bln is marks a major step towards a gradual resolution of the credit crisis, though Paulson himself yesterday warned against expecting any speedy return to normality and said that more steps may need to be taken. In other words, Paulson is cognizant of risks that may eventually pound on the markets driving them deeper still. Read More...

Tags: Rescue Package

Hello Traders,

Another Bloomberg interview with Jim Rogers for you. Watch the interview
Read More...

Tags: Videos

Today's G7 meeting will be the start of new initiatives attempting to stop (which ain't gonna happen, but perhaps slow) the massive global economic shift as finance ministers and central bankers meet to decide on a response to the worldwide financial crisis. Asian equity markets are trading sharply lower after US markets got whacked again yesterday. The Nikkei is down over 8% at the time of writing and we expect both central banks and governments to announce new measures with haste to improve confidence in the financial system. Read More...

Tags: Risk

Hello Traders,

I have said countless times... Understanding the market you are trading is the first step to success.

Along with the video on "Money as Debt" which is posted in the free members section. I strongly recommend this video on the Federal Reserve. The information will give you a foundation on understanding the Federal Reserve, which will broaden your competency of the forex market and what fundamental shifts are driving trends and price. Read More...

Tags: Videos

Ref UBS

We continue to see hightened levels of volatility in the forex market as the historic global financial shift continues. As we have discussed in Pro Traders Club, the rescue plans, although necessary to soften the impact, will not outweigh the tremendous strength of mass market forces. EURUSD traded up to a high of 1.3743 from 1.3567, while USDJPY traded in a 101.06 to 102.87 range. US stock markets help up at the start of the US session. However, the weight of uncertainty overwhelmed the market again, and losses in financial stocks once again lead the overall market lower. The S&P500 closed the session down 5.7%, while the Dow was down 5.8%, and the Vix index closed higher at 53.68, an insurmountable level. Read More...

Tags: Rescue Package

The 700B rescue plan was finally approved on Friday. I view it with mixed perspective, as it was a necessary action, but the plan will not endure without consequence . Senate was ready to approve the plan on Wednesday awating Bush to sign off on it to relive the financial world of the worse credit crisis in history. The markets are also not convinced that this is the solution. Dow ended up 7.3%% lower to close the week. The news was, which had been largely anticipated after the first rejection, was clearly not enough to boost investors confidence. Dow indeed closed lower than Monday's low, where the historical 777 points fall occurred after House initially rejected the plan. S&P 500 also had it's worst weekly decline since Sep 01 and fell 9.4%. Read More...