monday trading

As I've been saying the market has been great for bulls & bears trading and you don't hold on to your position too long. Take your profit and ride the wave up & down because the market allows you to.

My view on the US & world economy is [content moderated]. The fundamental picture is bad and US NFP on Friday confirm it. Technically, we are very toppy as well but why we didn't see the big fall on Friday?

The US market has been supported by earning reports which been re-rated with low expectation so numbers come in are considered to be better than expected. The only bit which worry me is most are still because of costs cutting. But yet the market still slowly grinding up the hill very slowly as By50 highlighted.

The answer is $US carry trade. The world market is riding on another bubble of huge liquidity from the Fed. The cheap $US fund is allowing big boys to buy into the market and talk of deflation for the US economy and Big Ben recent comments concerning of the US economy has been some what ignored as they keep borrowing cheap cheap money (as my Budgie would says) and buying into stocks.

If we're not toppy then I would focus on trading long into the above scenario but for the sake of my superfund, I prefer to trade more on the short side, just in case and the indicator I am watching is the $US for direction.

Soon we will have traders scratching their head wanting to know why the market go down when the US economy is booming. Isn't it a fun games we are playing?

Good luck.