Stocks, Bonds and Currency’s remain on the Ropes
Today certainly didn’t give much hope to the Bull’s in the market (are there any left?). Things started out pretty good. European stocks were up, Emerging Market currency’s were stronger and there were a few people looking to put on receiver positions. Then “poof” it all vanished. This market is unable to hold a bid. There is no denying that. Any flow that I have seen is to buy Dollars and liquidity continues to be thin. We are just in one of those periods of time were any news (or lack of news) is perceived as bad news. There is no sense in fighting it (although I try).
For rates I see very little that I find interesting. I spent a good part of my afternoon looking at curves trying to figure out a strategy with little luck. The curves are pretty flat (currency against Dollar), which doesn’t really suit me and if Brazil raises rates in April like I think it should flatten more. In Mexico I think rates will rise latter rather the sooner. As such the curve should steepen out a little. Neither of these views are strong enough to entice me take a position.
I went home tonight Short Usd/Clp and Usd/Cop, I am confident these markets will open up under water tomorrow morning. It just hasn’t been my Day/Week/Month/Year. Oh well as a former co-worker of mine used to say, It’s only money and it’s not mine!
As for my Super Bowl prediction, If you had been looking at my P/L lately you would have known that the Saints were bound to win.
Good Luck and Good Forex Trading
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