Tag: traders

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It is less about political interference with the Fed and more about the degree of interference.

There is ongoing concern of a threat by the Executive Branch to the independence of the Federal Reserve System, specifically influence by the Executive Office of the President on the decisions made by the Federal Open Market Committee on monetary policy. I do not think the issue is political threats to the independence of the … Continue reading It is less about political interference with the Fed and more about the degree of interference.

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Binary options: What weighed on trader minds last night; first glance at Global South FX rates.

What has been weighing on the minds of binary options traders? Traders who purchased the NADEX binary options contract for the EUR/USD>1.1340 expiring at 11pm last night won their bet. The contract closed at 1.13761. The idea that the European Central Bank will cut its interbank rates tomorrow likely influenced traders’ outlook on the trajectory … Continue reading Binary options: What weighed on trader minds last night; first glance at Global South FX rates.

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Investor protection: Why a trader should be wary of her broker’s knowledge of the economy.

I just finished reading an article written by David Kelly, chief global strategist at JP Morgan Asset Management. In the article, Dr. Kelly shares his thoughts on what he describes as “the delicate health of the economic expansion.” Dr. Kelly estimates that gross domestic production may be viewed as stagnant based on GDP numbers due … Continue reading Investor protection: Why a trader should be wary of her broker’s knowledge of the economy.

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Traders should understand political narrative is about keeping you in a state of belief.

Political power is about keeping the electorate in a state of belief. It is not about getting the electorate to a place of individual knowing and understanding. Individuals who know and understand have overcome fear and confronted the monster of scarcity that is spawned by our psyche. By arguing scarcity, power creates the idea that … Continue reading Traders should understand political narrative is about keeping you in a state of belief.

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Trading: How to cut out the noise in a DIY world.

We are in a do-it-yourself world. More people will be interested in managing their own wealth which will include trading on their own. The middleman brokers will have to shift to providing insights versus mechanical services like opening accounts and creating churn by offering new products. I have grown suspect of the narrative that middlemen … Continue reading Trading: How to cut out the noise in a DIY world.

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Interbank market news scan: International Economic Emergency Powers Act: Never act on the rumor of executive action.

As the media reacts to statements by the President-elect regarding tariffs on Canada and Mexico and taking Greenland from Denmark, I have to counsel caution about the weight and gravity of Donald Trump’s pre-inauguration pronouncements. Mr. Trump is not yet the President of the United States and until such time, trading desks should not pull … Continue reading Interbank market news scan: International Economic Emergency Powers Act: Never act on the rumor of executive action.

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Is strong dollar policy antithesis of the Trump manufacturing agenda?

Currency analyst and trader Kathy Lien shared this video where she discusses the reasons behind the current climb in dollar strength. She lists five major reasons. First, the US economy is doing well when compared to the Eurozone and Asia. Yields are increasing and attracting more investors. Second, the Trump return to the White House … Continue reading Is strong dollar policy antithesis of the Trump manufacturing agenda?

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Trump forgets that as head of state, he is responsible for expanding it.

In this video, some rich bros from the All-In Podcast are waxing philosophical about the likely positive impact a Trump presidency will have on markets including the equity and crypto markets. There is the usual narrative about how a lighter touch, deregulatory scheme will create growth in the markets as well as in economic output. … Continue reading Trump forgets that as head of state, he is responsible for expanding it.