Discussion in 'Trading' started by bond_trad3r, Feb 20, 2011.
Instability = Profiability!
Place your bets, gentlemen.
Instability cause panic. Panic causes a rush back to the US dollar.
If there is to be instability, Short CAD and Long USD!
This time is different
it always isn't
INSERT GIANT EYE CATCHING POST TITLE HERE!!!!!!
I don't get it? What's all this crazy talk about. Seeing who the poster is, i'm sure it's just something CRAAAAAAZZZZY stupid.
Your post makes zero sense. $US is up today against $EUR but it is down versus $CDN. Canada has a huge benefit from resource stocks, some of which go up in times of crisis. In fact, the only potential negative for $CDN is its own government jacking up interest rates when they perceive the $CDN is too high. Hard for them to do this now though when we had a surprise trade surplus despite the high $CDN.
So many better plays if you truly believe in the $US. I'm not sure how you factor in money printing though which directly weakens $US at the source. I guess the idea might be the $US got so low the printing is factored in and it might be cheap now. I don't follow it enough to know if this is a credible idea.
Go look at what happened during the banking crisis. Keep in mind that the US markets are closed today. Also, the Middle East crisis isn't large enough yet to cause a real panic and a rush back to the US dollar.
I was assuming that OP feared a major crisis, not a little thunder storm in the Middle East.
OP has it right. Chart is screaming $1 CAD = $1.1x USD by the end of the year.
Oil is dragging CAD higher.
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