09-17-2008, 08:19 PM
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Member
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Join Date: Mar 2008
Posts: 15
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Quote:
Originally Posted by John Kicklighter
Hello winterwhite,
The alternatives in this sort of market environment come in two brands: a cautious approach or an aggressive one.
In being cautious you would want to avoid the US dollar and long major carry trade pairs (GBJPY, AUDJPY, NZDJPY, etc) until the financial crisis is worked through. Otherwise, you are inviting incredible volatility into your trades where technicals and fundamentals mean very little and can be broken with little effort. This means trading pairs like EURCHF, CHFJPY, AUDNZD, EURGBP, etc.
The more aggressive trade would be to short those risky things that you don't want to be long in. So, if you see strong technicals and long-term fundamental reasons for it, you can look for good short dollar and carry trade positions.
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John:
Thank you for the clarification as well as your many
commentaries. |
