U.S. financial institutions that employed leverageâincluding banks, broker-dealers, hedge funds and government-sponsored enterprises such as Fannie Mae and Freddie Macâwill suffer approximately $460 billion in credit losses, according to a report by Andrew Tilton, an economist at Goldman Sachs & Co. If there was any doubt that those losses are due to the bursting of the real estate bubble, Mr. Tilton's report dispels it. Half of the losses come from residential mortgage loans while another 15% to 20% is due to commercial mortgages...
Do not listen to Tilton or whatever his name is. I would guess that some green stuff that was in his wallet is now in the wallets of some smart guys in this forum. Listen to the market and Atticus (he is responding here. His opinion is worth more than a thousand and one Tiltons (and a quarter of their ears)). Only difference is that people like Atticus are rare and do not use the word Gold in his name. Tilton (if smart enough) is probably getting his advice here on the correct calls he made if any.
while typing and reading news, I missed the trip of EUR/JPY to 157.90 area. I would have shorted it. Addition: it gave me a second chance to short it. I sold 1/4 of position at 157.78.
Just took off 1/2 of short position at 157.05 for a 60 pips profit. I will let the 1/4 I shorted at 157.78 ride to possibly 156.65 (where another resistance might be). Addition: this pair is very volatile. By the type I typed the above three lines it went up close to 30 pips. I might short another 1/4 on a possible move back to 157.05
Atticus: did you check the equities. I think a "sell off" just took place. Is this the beginning of a sell off of EUR/JPY and possibly the EUR itself across the board?
Great! You are fast. I typed the above note in case you did not see the "sell off" after I read your previous note. You play on the EUR/JPY is I think a good one. It should play well I think. The danger is more to the 152.00 strike, but since you are far away from it since put the trade, it should be fine. The clock is running anyway on your otherside of the trade. Addition: just sold short on the rally to 157.40 (I think it is now the first resistance on an attempt on the way up if any).