26 March 2011

Benchmarks : Weekly Update

  • Was a good week until Plosser comments (FF at 2.50% in 1 year) put pressure on short USD positions right at week's end. Net, tiny down in P&L from last week.
  • Before Japan earthquake and Fukushima, my thinking was - protect short USD/fx and long commodity positions with long US interest rates. This was destroyed by flight to quality into USTs after the disaster.
  • Now, however, it seems that the original plan is working again with market's focus back to US rates and differentials.
  • USDX : Too early to call for a reversal of the well established downtrend despite rally in reaction to Plosser.
  • US10YY : Yields look like heading higher.
  • S&P500 : Uptrend continues after recent shakeout.
  • Gold : Disappointed at failure to hold close above previous old high at 1444. Am still bullish but cautious.

1 comment:

TradeDemon said...

T: I'm loving the 'MY T4L Journey' story - very humbling - thanks for sharing such intricate details with us all...