Comments on: Romney-Bernanke trade

By: pandu

pandu — Tue, 23 Oct 2012 02:07:41 +0000

The end of loose Fed policy is one possible outcome, but another factor to consider is the fiscal cliff. If Obama wins, political gridlock Washington is guaranteed. Otoh if Romney wins, there will not be political gridlock since Repubs control congress. That should remove a big worry for markets and the risk-on party will re-ignite. Add to that the US economy is slowly turning the corner (not getting worse) so risk-on might dominate. In any case, I trade the charts, they know best!

By: pandu

pandu — Tue, 23 Oct 2012 01:20:27 +0000

Sean, The Romney win scenario you outline is quite plausible, but the market has other drivers in the short run which is the timeframe most of us trade on. One has got to decide whether one’s going to trade on fundamentals / news or on technicals. Getting the two hats mixed up usually leads to disaster. I’d much rather trade purely on technicals.

By: Jones

Jones — Mon, 22 Oct 2012 23:15:03 +0000

Thanks Sean, I’ve always liked to read your views, all the way from F/L days.

By: Sean Lee

Sean Lee — Mon, 22 Oct 2012 23:01:32 +0000

Morning Jones, as a purely technical trade that makes sense but I’d rather wait and see how mkt develops rather than leaving fixed orders? You’re potential s/l is very tight to the 61.8 Fibo so maybe give it a little more room? Sell 10470 with s/l above 10500 perhaps?? Just some thoughts, no strong view at moment. Good luck++

By: Jones

Jones — Mon, 22 Oct 2012 22:47:01 +0000

Morning Sean, what’s your feeling on EUR/JPY today?

I’m thinking about selling at around 104.62 with SL 104.85. TP is discretionary right now as I would like to see the price action before the price hits 104.62. At the moment, it looks like TP target should be somewhere around 104.15.