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Dollar-Equity Market Identity
Here is why everyone can dump their E-Trade accounts and just get an F/X trading terminal. Just don't pay your monthly fee in Euros.
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http://seekingalpha.com/instablog/407380-jeff-nielson/26379-gold-wars-pa...
"Here is why everyone can dump their E-Trade accounts and just get an F/X trading terminal."
Yep. I did that. And I went long a boatload of AUD/USD at .83. Stops at 83.50 now. I figure let the stupidity work for me for a change.
Liquidity is racing around the world in milliseconds. Anything to escape being trapped in anything.
The game of musical chairs, and music is playing faster and faster. Beyond HFT lies UHFT.
At least we can take some comfort in the fact that the speed of light is a limiting factor (~66ms to do half the earth's circumfrence, guess that's why we need colocation).
"Beyond HFT lies UHFT."
Will I have to get a converter box for that?
Dude, you missed out on the $50 converter box coupons the government was handing out some months ago.
Missed it by that much.
October 11 buy alert.
Bad news at bottom?
http://www.fasb.org/cs/ContentServer?c=FASBContent_C&pagename=FASB/FASBC...
Dollar short positions are decreasing. Euro shorts are increasing and bets against the GBP.
FYI this was reported on Friday.
1 trillion in unfunded liabilities coming to the market next 4 months.
2 trillion next year.
Spin that Fed meisters.
Dollar / Equity correlation is typically a short term trend though, no?
ie: Lower dollar equals export stimulus, but also equals higher oil, which eventually raises mfr costs, which eventually cancels the stimulus.
Dollar debasement is another kick-the-can down the road attempt... but that road isn't very long...
Yup, did that in mid-2008.
Now I know what it feels like to try and short the equity rally that´s been going on. You can get a great position and lock out your risk over and over but you´ll still get stopped out. Long gold as a hedge.
Look at the volume it took to fade it and look how fast it crawls up at low volume.
OK, based on the simple logic of Herb Stein "Things That Can’t Go On Forever, Don’t". Anybody want to wager how long this greenback carry party lasts? I'm not a trader at all and don't live in the states, but it is tempting to go out and get a USD loan and buy just about anything with it and pay it back in monopoly money next year. Somehow I sense that when the proles catch wind of this little opportunity, the window will close and, once again, the idiots are holding the steaming bag of fecal matter.
Dangerous games. In a serial default/debasement race, expect lots of 'events' and complex reactions. Remember the index is of relative strength, so the Euro or Yen can take a whack due to oh I dunno a new huge corporate collapse or whatever and the dollar index will punt higher.
The pros know how to do it...carefully, often painfully, and normally using Other People's Money.
ZH tees are getting more expensive by the hour.