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Article Forex Trading – Getting to Know the Bigger Picture
Getting to Know the Bigger Picture
I think the title is a good intro for new traders, however it’s a bit simplistic, correlation of all assets classes if far from a science. I worked as junior Macro Trader for Hedge Fund in 2006, when the Interest rates yield curve inverted and senior Traders and Analysts mentioned this had never taken place, IR swaps markets became increasingly difficult to make large profits as in the past, strategy had to change and adapt, carry trades simply disappeared due to the trading environment at that time. I watched mass selloff of Equity, Bond markets which were inevitable at the point. Critically Credit spreads exploded, Credit defaults of an unprecedented scale, bankruptcy and exist of Global financial players. Now that QE has arrived the past 4 years has distorted the picture, as Central banks, simply print money propping up the inter-banking system, lack of credit of governments, sovereign, corporate and retails level are a real problem. Unfortunately 2012 political arena will be the play one of the biggest influence on the markets, Euro crisis (still not satisfactory resolved), US elections and Commodities, Oil, Iran old embargo for example. John Murphy’s is a great columnist demystify technical Analyst and dissecting several points you and I have very briefly touched upon … hopefully you may discuss in more depth in one of your forums. Many thanks Kathleen cheers Ken.
I think the title is a good intro for new traders, however it’s a bit simplistic, correlation of all assets classes if far from a science. I worked as junior Macro Trader for Hedge Fund in 2006, when the Interest rates yield curve inverted and senior Traders and Analysts mentioned this had never taken place, IR swaps markets became increasingly difficult to make large profits as in the past, strategy had to change and adapt, carry trades simply disappeared due to the trading environment at that time. I watched mass selloff of Equity, Bond markets which were inevitable at the point. Critically Credit spreads exploded, Credit defaults of an unprecedented scale, bankruptcy and exist of Global financial players. Now that QE has arrived the past 4 years has distorted the picture, as Central banks, simply print money propping up the inter-banking system, lack of credit of governments, sovereign, corporate and retails level are a real problem. Unfortunately 2012 political arena will be the play one of the biggest influence on the markets, Euro crisis (still not satisfactory resolved), US elections and Commodities, Oil, Iran old embargo for example. John Murphy’s is a great columnist demystify technical Analyst and dissecting several points you and I have very briefly touched upon … hopefully you may discuss in more depth in one of your forums. Many thanks Kathleen cheers Ken.
