Skip to main content

Hitler and His Margin Call

Here is a short USD trading outlook and a short entertaining video for your enjoyment towards the close on Friday trading. Looking forward to see you guys here again this next Monday. Have a great weekend ahead!

The financial markets have a lot to digest today as they attempt to assess the implications of the USD 500B bailout plan for the US financial system, where the assumption is that, this program could greatly improve liquidity and allow affected firms to salvage their problematic assets, and put an end to scares/panics made by the market on these big firms. Therefore, because of this, the U.S Treasury markets gain another USD500B of new debt. As I understand that many investors now may feel that the current strain is far from over, I still urge everyone to observe equities closely, if you remember yesterday closely, you would understand that the net change of the indices at the end of the day is more important than its change before the open.

I would believe that the markets may very soon focus its attention as to how the US Treasury could sustain its 'liabilities' which it has attained from the private sector over this 2-month period. 

In summary of today's events in Asia markets, Shanghai and Shenzhen stock exchange closed sharply higher, trading within a very thin range on intraday trade, as the Chinese government took steps to bolster stock market prices. STI, Hang Seng, Nikkei and most other asian exchanges followed suit as sentiments of 'the panic may be over' mood sets in.

Libor and JGBs yields were traded less erratically as compared to how it was quoted over the past 3 days. Treasury Bond prices are also weaker as the market goes into 'the panic may be over' mood.

Commodity currencies like CAD, AUD and NZD were mixed. EUR, CHF, JPY and GBP traded lower against the USD. 

Gold eased modestly as well, as investors target for higher returns from other instruments, other than the refuge instrument. Oil remains firm, but look out for the $100 line, as it may seem like a pivotal price for the instrument. 

Lastly, should time allow, take a close look at Eur/Usd and Oil. Does it say anything to you?

Now, let's enjoy this short clip from hitler, and enjoy a great weekend ahead.

Cheers ;) 


Comments

Post a Comment

Popular posts from this blog

Financial Crisis Management

Back in the 80s, when the US government had to deal with a crisis where the Resolution Trust Corporation, which is a holding company formed and housed within the Treasury, to deal with distressed real estate that was funded by loans and savings, the strategy was deemed a sucess where it was later reused by the HK and Indonesian government during the asian financial crisis. This indeed managed to give immediate liquidity and confidence to the markets during such turbulent times. In addition, this came as a win-win situation for the governments, because as these distressed assets were bought in a 'fire-sale' price, which was significantly cheaper than its face value, the governments made profits from such transactions, where in today's case, the similar situation applies. The target of this plan for the purpose of restoring order in the banking system, so banks will remain confident to lend, as well as to free up funds for further lending and use when the economy grows.  Afte...
Post a Comment
Read more

Market Call

After much thoughts as to how my market calls should be made in order to create the best effect and authencity, here are some details that I would like you to know: All trades made on this  trading  account no. 77104 will be 'real' live trades. A report in the format (shown on the right) will be reported on a weekly and monthly basis. Trades and market calls made by me, are only for the purpose of reference, and is no indication for you to trade and follow.  Entry and exit of trades may be in a matter of minutes, therefore, I would urge readers to follow them closely or to backtrack the results with the use of their charts for authentication of results. See ya soon on market call.
Post a Comment
Read more

Can Banks Be Trusted?

Today's events have indeed been a thrilling experience experience for the international markets. As I am writing this, the China Central Banks has just cut its key interest rate again by 27 basis points to spur growth, Lehman (est. 1844) has filed for Chapter 11 (Bankruptcy) , there are rounds of ECB having an emergency rate cut, UBS sneaking in to declare another $5B of writedowns, AIG seeking help from the Fed with a request of a $40B bridge loan after rejecting an offer by Flower to prevent themselves from joining the slaughterhouse where their CDs are currently gapping outwards, and it seems that the only few pieces of good news are probably that Merril had a merger with BOA, as well as a consortium of global banks have put together a $70B fund to facilitate liduidity and an orderly resolution between Lehman and their counterparties. ECB also joined in with $30B to curb liquidity woes as well.  In my opinion, it seems like an obvious trend that all Fed Governors are challenged ...
3 comments
Read more