Posts by "qiman"

Yes, not uncommon for alot of seemingly good short positions get taken out on no news. Something I learned back in the 90's while trading the stock market: The markets often behave about as rationally as a manic-depressive middle-aged person who is going through a mid-life crisis, and who has forgotten to take their medication. While at times my degrees in international economics and international policy do enable me to better understand market dynamics, at other times they are an impediment to just observing what the market is actually doing-no matter how irrational. Sometimes there are understandable reasons for price movement, and sometimes there are not. Both technical and fundamental analysis can fail us. Market behavior is extremely complex, too many inputs to always comprehend the WHYS. Human emotions also can be all over the map, the maddness of crowds. The market at times acts insane, but it is always right.

Goldman's predictions are often important for traders to be aware of at the very least. They have enough cachet and power that their predictions alone sometimes move the market, as traders hop on the bandwagon. And at other times you can make money doing the exact opposite of what they recommend. Of course, there are already those speaking of how this is a set up by Goldman, right before their traders do a massive short of the Euro.

"The broadest measure of sterling's strength the trade-weighted index produced by the Bank of England dropped to a four-month low, down from 78.6 points to 77.9, while the euro climbed to just beneath the 90 pence mark, as economists mulled the fact that the ONS's second revision of GDP was far less promising than it at first seemed."

http://www.telegraph.co.uk/finance/economics/7327017/Pound-slides-as-figures-underline-scale-of-UK-recession.html

"We are so used to looking at gold rising when the dollar falls that the concept of gold rising when the dollar rises seems to break the rules," Julian Phillips and Peter Spina, editors at GoldForecaster.com, said in a weekly newsletter sent Tuesday.

This is from a good article on Marketwatch: Gold breaks the rules
http://www.marketwatch.com/story/gold-breaks-the-rules-2010-02-26?dist=beforebell