Crazy market gyrations – we are all currency traders now
Posted on 17 November 2009
From a high just after the open the Australian market has not looked back. XJO has traded down to 4730 on the day, a close below 4746 would be pretty shabby though yesterday’s low at 4706 looks like a bridge too far.
Notably the financials continue to sell-off. They had a bad day yesterday – and are down 1.5% again today. Just confirms that these latest fibulations have all been driven by a Pavlovian response to movements in the big dollar (or so it was once called). Base metals, gold and energy have been leading the way higher. So the thought that someone with very deep pockets was buying USDCHF has spooked the market mightily.
Conclusion – that stop out earlier today might just make it onto my wall of most annoying trades…
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