Thanks to the overnight news of Mr Summers pulling out, either you’ve made bundles or got creamed like me.
There’s no negating news like this. All the plans and strategies in the world are open to getting wiped out by a simple headline. It’s a timely reminder that this game (and our positions) are open to many different elements and no matter how much we try to make sense of it with fundamental and technical analysis, we’re all still walking on thin ice that can break at anytime.
The market looks to have been heavily invested in Mr Summers getting the Fed chair and what his standpoint would have been. Well they’ll likely never find out now but it does emphasise that the market sees the future of the Fed chair as hugely important, even though we’re just at the announcement stage.
The charts are full of gaps and question is whether we will see those gaps closed? I’m not one for gap trading. I always take such moves on their merits. It may have been exacerbated by the thin liquidity last night but the fact that we’re still at the levels now suggests there was an underlying tone for the prices to go where they have. If not then they would have reversed. Personally I can’t believe the market went so far on the news and I was itching to fade it last night. I held off as I was too busy calling Mr Summers every rude name under the sun for blowing my NZD/USD position, so thought it better to sleep on it and see what today brings.
So what’s your view ladies and gents? Will we see the gaps close and how much do you love or hate Larry Summers?
