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Kospi opens up 2.5%. LOL squeeze much?!

Oil last night looks suspiciously unperturbed by Euro news and new US jobs? How is it so?



CL 10-12 (Daily) 27_01_2012 - 8_09_2012.jpg
 
Ya gotta admire those hedgies that just take on 1000s of contracts while been sold into continually for the first 30 min. Then to just push harder and get all the gap fillers off side.

HSI 09-12 (15 Min) 7_09_2012.jpg
HSI 09-12 (1 Min) 7_09_2012.jpg

Maybe I should ask to get my size increased to play as well. Reckon it probably takes only 10,000 contract pos!! :eek:
 
skc said:
Then why did we just retraced all the way and printed a new low?! (Along with my week's P&L :banghead: :banghead:)

Big divergence between the ASX and the China market today.
Click to expand...

Yep, see my post in the XJO thread. Gap fills win one out of 10 markets. :rolleyes:
 
skc said:
Then why did we just retraced all the way and printed a new low?! (Along with my week's P&L :banghead: :banghead:)

Big divergence between the ASX and the China market today.
Click to expand...

Shake out the longs???:D

Maybe the close will tell?
 
With the iron ore bubble burst the aussie is looking a bit shaky...., your thoughts gents?





"The high dollar is bedevilling economic management.

Normally when resource prices climb, the dollar climbs to spread some of the benefits (via lower import prices) and move labour and capital away from competing trade-exposed industries (by making them less competitive).

When resource prices slide, the opposite is supposed to happen. The lower dollar is supposed to spread the pain via higher import prices and make previously uncompetitive trade-exposed industries competitive again.

That's the theory. This time, the Aussie has stayed resolutely high in defiance of convention. Since July 1, the iron ore price has slid from $US127 a tonne to less than $US87. The Aussie remains about where it was on July 1, at a touch about US102 ¢ (although, in the meantime, it had climbed as high as US105 ¢). Not only is Australia being denied the government spending shock absorber, it is also being denied the exchange rate shock absorber.

It's been happening because foreigners love our high interest rates and our triple-A credit rating. McKibbin is among those urging the RBA to buy foreign assets with Australian dollars in order to nudge the Aussie down, although there were signs emerging this week that it might not need to bother.

Foreign buying of Australian government bonds fell to its lowest point in three years in the June quarter. The proportion held by foreigners slipped from 79 per cent to 77.5 per cent. Although the iron ore slide itself hasn't hurt the dollar, if foreigners start to believe it will, they could desert it en masse, leaving little holding it up.

Brian Redican of Macquarie Group says it could be the Aussie's ''Wile E. Coyote moment''.

''What we are referring to here is the well-known cartoon character who, when he's chasing the Road Runner, frequently runs off the edge of a cliff,'' he wrote to clients.

''Initially, at least, he doesn't fall. His legs are still running as if he is on land and he remains suspended in midair. But then he looks down and realises that there is nothing supporting him and it is only then that he succumbs to the forces of gravity and plunges towards the valley floor.''

On Thursday, the chief economist at AMP Capital, Shane Oliver, spoke of an US80 ¢ dollar. He said, if needed, it would fall to US60 ¢.

Full article: http://www.brisbanetimes.com.au/bus...turns-off-swans-money-tap-20120907-25kb7.html
 
avion said:
With the iron ore bubble burst the aussie is looking a bit shaky...., your thoughts gents?

Normally when resource prices climb, the dollar climbs to spread some of the benefits (via lower import prices) and move labour and capital away from competing trade-exposed industries (by making them less competitive).

When resource prices slide, the opposite is supposed to happen. The lower dollar is supposed to spread the pain via higher import prices and make previously uncompetitive trade-exposed industries competitive again.

It's been happening because foreigners love our high interest rates and our triple-A credit rating.
Click to expand...

Seems to be contradicting itself.
The later is the value maker.
When we stop making so much money, interest rates will come off and so will the $.
 
Trembling Hand said:
Ya gotta admire those hedgies that just take on 1000s of contracts while been sold into continually for the first 30 min. Then to just push harder and get all the gap fillers off side.

View attachment 48870
View attachment 48871

Maybe I should ask to get my size increased to play as well. Reckon it probably takes only 10,000 contract pos!! :eek:
Click to expand...

Haha, what'd the risk manager say about a 10,000 contract pos?!
 
The HSI is going up again?! Are they on crack? If I were a discretionary directional trader, I would be betting that puppy will see a bit of a draw back from Friday. Mind you, if I were a discretionary directional trader, I would probably be broke, so we'll see ...
 

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