Saturday, 17 July 2010

Trading Ideas 17th July 2010

This last week has been a bit manic, no matter how far analyst expectations have been beat, the companies the share price has gone down. The banks particularly have been beat down and given the new finance regulation that is coming into force their future profits should be impacted due to the reduction in risk taking.

In the back of my mind the US employment situation is a bit of a concern, particular for companies that are largely focused in the US.

Next week there are significant number of earnings release and whether this will move the market considerably is yet to be seen.

For the coming month I have put in orders to go Long on the following for EURUSD

1 contract at 1.3215
2 contracts at 1.3420
3 contracts at 1.3625
4 contracts at 1.3830

My rationale is that the US is accumulating considerable debt and the local states are also having significant cash flow issues.

The Euro has been beaten down due to debt issues in Greece, Italy, Portugal and Spain. However what a lot of people fail to understand is that these countries do not suffer from excess spending, more so incompetent and corrupt tax collection policies. An increase in tax collection methodologies together with reduced government spending should see things level out in the medium term.

The other point here to note is that although the Euro has been bashed lately the USD is in much the same position but not yet caught the attention of anyone.

No comments:

Post a Comment

About Me

I try and work a broadly market neutral strategy and based purely on fundamentals and my gut feel.