700 Billion Bail Out

Good evening dynamic traders.

Those we have mentored one on one at Dynamic Trader will be familiar with Bretton Woods. We have travelled back to our forex roots and are visiting Bretton Woods where the international monetary fund was signed back in July 1944. The view from the room where the agreement was signed is spectacular. We took a photo from the patio not far from the room which is below.




Below is a picture taken a little way down from Mount Washington.




The staff at the Mount Washington resort are extremely friendly and any forex traders wanting to go back to their trading roots will thoroughly enjoy the hospitality and scenery here.

As for trading, we have not really been watching the markets but have kept up to date with the news and whats been going on especially with the financial crisis in the U.S and the 700 Billion Dollar bail out.

Since the beginning of the year we have been saying the markets seem unstable and we could see some reversals. We also mentioned interest rates could decline and so far all of what we said has happened.

Declines tend to have more velocity than upward trends but the markets really have moved fast and this is predominatly due to the sub prime markets. Our take on this 700 billion bail out is it is without doubt absolutely necessary but it just does not seem enough to really resolve the massive problem. Only time will tell and we are in interesting times which brings up something to think about. Does history repeat itself? Many traders beleive and will say no history does not repeat itself on the financial markets and that market behaviour is completely random. In fact their are some famous books on the fact that trading the markets is random. This might well be true but again with enough data I think a pattern could possibly be recognized. However, I should say we trade on price and not time. That said, seventy nine years ago the U.S had the great depression. If the current situation reaches a crisis stage (we were not far from there until President Bush's bail out) and goes down historically as a major economic disastor then we could have a pattern formation.

Below is a photo of us from the top of the lift ride and the white area to the left of the picture is Mount Washington which is where the Bretton Woods agreement took place.




Good trading...

Forex Analysts
Javid & Anne