Friday 24 February 2012

The Breakout and Breakaway.....

Good morning folks, TGIF! 


What a way to start my Friday. Awoken at 4ish this morning to be greeted by a nice rally in the EUR. Stayed up and check my charts, chatted on FB with an ex-colleague who is in Ldn and tried to sleep at 5ish. Woke up again at 6.19 and realized that my helper had overslept. Rushed to wake her up and helped my son get ready. He had to miss his school bus and I drove him to school. Nice change but don't make it a routine! Dropped him off and took a slow drive (I don't road hog!) to Tiong Bahru market to buy Chui Kuey and beancurd for breakfast.... Yummy!


Back to the FX market......


I was invited to the Euromoney Conference on Wednesday in Singapore by my buddy but could only make it to attend the discussion on "Macro Challenges and Opportunities in 2012". With due respect, I was not very impressed by the panel. But one good takeaway from their discussion was........ everyone was bearish the EUR!!!  


The breakout after hours of consolidation in the E$ has materialized and indeed Thursday was the shopping day. I am long the E$ and EURCAD for now. 
I feel we are in a very different phase of the market.... a phase where negative and positive carry trades are rallying. So is it risk off or on or does it matter at all?


If my count is correct, E$ correction should be shallow and 1.3400 to be tested today with 1.35/36 in sight over till next week. 1.3280-1.3300 should hold for today. 1.3200 news induced.




Be very greedy when others are pessimistic, be greedy when others are skeptical, be skeptical when others are optimistic and be darn fearful when others are euphoric!!
Warren/Templeton fusion



Dare to be different but not for the sake of being different
Jason Tang (yet to be famous)

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