Forex Trade Calls. Forex Capital Management Calls.

Posted by Gatersaw | 5/16/2008 03:19:00 AM | 0 comments »

Forex Trade Calls.  Capital Management Calls.

We are in a wild market.  Carry currency pairs are disconnected from S&P which means global risk management systems are drawing down which means liquidity is scarce which lends to the downward spiral of volatility until something breaks the chain ie. a large news event that straightens the direction of the market and gets everyone on the same page.

Crude has been the driver of most of the disconnect from what I can see.  Global risk systems play crude along with currencies as a hedge so when there are disconnects you can imagine large funds are drawing down as their risk models are blown apart.  As they draw down they lose credit and so the downward volatility continues.  So to restate the concept we are in a muddy time right now which I predict will be resolved during Housing Starts data released from the USA in a few hours.  It’s kinda like the electric shock used to restart a fibrillated heart.

Forex Trade Calls London 11:30am.

www.midwesterncapital.com capital management

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