Saturday, November 29, 2008

Start of a new job

I beginning to treat my forex trading as my job, as of the moment. At least I will not be saying I am unemployed. I have something to do, to monitor. I am my own boss and I can control my P&L. Today is Sunday and it is time to prepare for another day in office tomorrow. There are still plenty of selling off in hedge funds and mutual funds worldwide. There has been reports that the USD appreciating is because of the heavy sell off. As ROW rush to cover their losses in USD, they have to buy USD to cover their margins, and their losses in USD, which results in a increase in demand for USD since the market collapse. The heavy sell off will probably carry on until end of the year and probably see a huge shift in patterns from December onwards.

China and Japan is expected to liquidate their USD reserves as they need to try to stimulate their own economy and there hasnt been a better time to do it than now since USD is at a high. Once the 4 trillion stimulus package in China starts, and the Fed starts to release their newly "counterfeited" notes into the market, the huge increase in money supply should see a huge rise in interest rates in US and also a heavy sell off in USD. Well... this is all by the fundamentals of the economics. But apparently we have to see how Geithner will react to the situation when he steps into the office. Anyway, no one can do a worse job than Paulson. I remember a quote "they might as well put my 6 year old in office. At least he will not destroy the economy, he will just play with his toys."

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