Consequences for Japan

Discussion in 'Trading' started by jedwards, Apr 11, 2011.

  1. I was there last week.

    I'll be going again in ~6 weeks.

    Life goes on.
     
    #11     Apr 13, 2011
  2. So, as traders, how can we profit from the crisis in Japan?

    Per the Gartman letter, we should be shorting the Yen. And keep the short position for a long time. The Japanese government has no choice but to ease monetary policy and print money. They have to in order to stimulate the economy and keep rebuilding.

    The Yen has popped up for the past few days and I'm keeping my eye out on it. I may dabble with one futures contract and see how it goes. But not sure if I want to short it against the dollar or another currency.

    Just some food for thought. Any opinions?
     
    #12     Apr 15, 2011
  3. Does this hold true for all countries that go through a recession?

    For example, if the Canadian housing bubble bursts and it affects the banks, will this cause the CAD to drop relative to the USD?
     
    #13     Apr 15, 2011
  4. Roark

    Roark

    Look at JPY strength relative to USD. After bouncing around a bit, JPY is now below 80. JPY shorts must be feeling some pain:

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3204457f">
     
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    #14     Jun 8, 2011
  5. benwm

    benwm

    yes I am (feeling some pain)!
    But I'm adding to short below 80... :)
     
    #15     Jun 8, 2011
  6. Roark

    Roark

    If you're feeling pain, you should not be adding to the position. Never average down.
     
    #16     Jun 8, 2011