AUTOREFRESH 
ForexLive US wrap-up: Speechless…
- ECB leaves rates unchanged, introduces no measures to improve liquidity, market function. Did not discuss buying bonds, Trichet says.
- S&P affirms Italian debt rating, quelling rumors of downgrade
- Merkel: Market is exaggerating tensions, speculators are our adversaries
- Greece passes austerity law; rioting resumes
- Merkel: IMF had to act on Greece because Europe could not act alone
- German cuts tax revenue estimates, Italy cuts growth outlook
- Fed’s Bernanke: US economy continues to strengthen
- US jobless claims fall to 444,000 from 448,000
- Trading error in S&P 500 rumored to have sparked nearly 8% US equity slide intraday
I’ve seen quite a few market panics in my nearly 25 years in the market but today was definitely one of the top ten and maybe one of the top five… Oct 1987. Black Tuesday 1992, and the days after the Lehman collapse might rival today, but few top it…
Markets were already under extremely intense pressure at mid-afternoon in New York with more rioting in Athens flashing across traders screen when US equities went into an epic freefall, never before seen in terms of the speed of the move, in my experience. The Down fell almost 1000 points intraday, the S&P 500 fell more than 100 points and all the other markets came completely unglued. Credit began to freeze like it did in 2007 through early 2009 and the market -making function almost seized.
It would not surprise me at all to hear of central banks intervening in markets tomorrow, not to change the market’s direction so much as to try and lower volatility.
EUR/USD fell as low 1.2510, coming perilously close to triggering what is rumored to be a massive 1.25/1.35 DNT…
USD/JPY had a day for the ages as leveraged accounts shed carry trades against things like the BRL in addition to the majors. Structural JPY-cross longs were were taken out and shot. 87.85 was the low for USD/JPY, 110.49 was the EUR/JPY low. AUD/JPY was slaughtered as well, falling 8 JPY peak to trough today. Makes this morning’s EUR/CHF price action look like a walk in the park…
The SNB abandoned it defense of the 1.4325 level, prompting a slide as low as 1.4005…
Expect markets to be razor thin on Friday with banks conserving capital and speculators spooked by a spike volatility. Non-farm payrolls are small potatoes compared to what we’ve seen today and will be an asterisk, in the schedule.
whats your take on eur/usd Jamie tommorow, going down to 1.2300s?
Jamie… any speculation on what we can expect for the eur crosses?
@jahed
it’s 1.262 now..
hope the trend will revert and go up the 1.3…
thnx all. nite.
1.25 is a huge level …. if Asia take it down there, id be tempted to buy …. also some very large barriers down there. And 1.25 was a long term target … now its 1.16 later this year, or maybe tomorrow if another bank wants to play fat fingers again …. !!!!
Hmmm, can anyone help me. I’m not sure if I should close out my shorts right now and take my profit or hold on. Any suggestion would be helpful for this Forex newbie.
@ Eric,
I you don’t know what’s happening and why (like most of us) or if you’re not following a precise strategy: take profits and don’t look back, because probably you’ll do the exact actions to come out with even less profit.
@Eric: Investing is very personal. Who knows what tomorrow will bring? Certainly adjust your stop position so if the trend reverses you keep most of your profit. There’s no way to guarantee you will get the maximum possible profit, ever. Just be happy you made money today – a LOT of people lost their shirts.
I understand, I’m just shaken up on the last few hours on what had happened to the market. And I’m just trying to follow the trend, or the herd in this case and seeing what the majority of the opinion about the EUR/USD is so I can get a feel on how to interpret what is going on.
I trade with FXCM, I could not execute my short EUR/USD position when it hits ard 1.52 , does anyone know how they will compensate me about 7000 CAD.?
Just cashed out. What a day. Market is too crazy right now. Glad to have made a big score but I feel bad for everyone who got stopped out on the spike. Cheers,
Thanks for the help jr. I’m gonna stick it out and see if i can’t catch some more pips short. Got some good shorts open. cheers
I’m flat but I’ll jump back in if we get to a level that makes sense. aud/usd at .895 for example. and aud/jpy when i have a better sense for how usd/jpy is going to flow. it might go back to 91.5 or beyond and take aud/jpy back up with it. or we could crash due to a euro banking crisis. weird scenes inside the gold mine…
I trade with FXCM too Lucy, they had some problems with their program earlier during and after the spike.
Maybe they will finally stop the encouragement of HFT…
i had to take sue ellen’s car to the shop so i was watching via blackberry, and driving… don’t know if i would have cashed out at 77, but arghhh, frustrated, but happy, but frustrated…
So Eric, do you have any loss from the problem? I tried to cash out at way better price with shorting EUR/USD position.
But HFT brings liquidity to the markets! Or was that liquidation? I don’t remember…
I don’t think I’ll be adding any more shorts at this point jr. Just piling pips on the ones I have. That is unless we get another monster leg down. I haven’t even had time or concern to count the pips yet. Got to be 5 or 6 thousand at least I would guess. Gotta get my run in talk later.
Well, the only problem was that I didn’t see the 1k pip drop until after it had rebounded cause my chart went blank. I’m assuming maybe many like you tried to cash out which caused some kind of traffic jam. I wish I could have cashed out, would have covered my losses.
@ Hart Wow… Hart, you’ve made 5-6 k of pips? LOL your like a Forex god compared to many of us.
Thats not that much considering eur/jpy moved 1000 just by itself. Not to mention aud/jpy. 5-8 good trades in the yen crosses makes that very doable. That is probably a pretty common outcome for those that shorted from Monday Eric.
I know, JR. I’m really see sawed, myself. My plays are longer term, but taking profits on that dip, would’ve been awfully enticing. I was planting flower seeds! Came in for a drink of water and checked the markets and nearly laid an egg in my draws. lol
just over 3.4k booked eric. just over 2k still open so can’t count them.
Eric, yes alas, it does not appear that hart has ever actually lost a trade.
He has commented on thousands of pips of profits. I have never actually noticed him commenting about any losses. It is always exhilerating to be esteemed by other traders. The account statement the most important factor.
Oh I got hit good by eur/aud and eur/usd last week p/s I just shorted yen crosses this week on great advice.
I just hope I can learn from you Hart, I just don’t know how to interpret the news updates and reports from each country. I have several indicators to help judge how the market is… but that is the extent of my abilities. Reading about you guys makes me realize how far behind I am.
Listen to and ask sean ,jamie and gerry eric. That’s why they are here.
[...] Massive movements in NY market saw EUR/JPY fall almost 10 big figures [...]