"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder

Tuesday, January 15, 2008

Not everyone has a yen for the Yen...

What? Psychological factors?
see: Contrarian view on the Japanese Yen


pupkinus said...

we will see the unwinding of the carry trade. maybe not soon, but it is clearly coming our way..

Charles Longfellow said...

Yes, that is the general consensus. The advance of gold is another example of a general consensus just begging to be proven wrong. Good to keep an open mind, especially when there is the feeling that it must go a certain way. Of course, as you point out, timing is the issue. One can be right in the long run, and still lose a lot of money being wrong about entry and exit.

pupkinus said...

Inflation is just beginning to manifest itself as a major problem. Gold is locally overbought but it is surely poised higher. I can bet we will trade through 1100$/ounce during 2008.

Charles Longfellow said...

Good one to watch. The $1,000 breakthrough will be a very bullish signal.

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What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?

"... internalization hurts retail customers and market quality"

see: EconPapers

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