Forum

Posts by "speculator"

View Member Profile
804 Posts Total by "speculator":
22 Posts by member
SPECULATOR
(LONDON, United Kingdom)
782 Posts by Anonymous "speculator":
 
123
SPECULATOR
LONDON, UK
Posts: 17
15 years ago
May 9, 2009 17:55
In Thread: Battle of High Yielders
we are due for a massive correction in equities and this rally is nothing but a crazy bear market rally and the market is certainly not cheap but attracting bored fund managers and speculators itching to make some quick gains.
SPECULATOR
LONDON, UK
Posts: 17
15 years ago
May 9, 2009 17:50
In Thread: How low will GBPUSD go in May?
hi guys i have just joined today.

it is quite obvious that Cable is being mainly driven by equity strength this year.

i can easily see cable making 2009 highs ie 1.55+ if equities sustain their recent gains.

however there seems to be overoptomism built in to the markets at present that could easily correct prices as potential negative surprises come about this summer.

The markets are now pricing in a long recession rather than depressesion which meant that forecasts were mainly beaten on earnings.

I do not see cable trading below 1.44 unless we have a 20% equities decline over the next 2 months or UK credit downgrades.

Gold has risen of late which could imply an equities correction as markets try to shift profits in to other asset classes.

In my personal opinion we are in a long bear market rally and such sharp gains imply further losses down the line. But the question is when the trend in eqities will change it may not be may. A shift in cofidence is very much likely in this type of recession. It is often when people expect the best that markets are shocked and a correction in price comes about.
Report Reply
 
123