I’m a loser today

I took my lense money and bought FNM at around $1. It closed at $0.75 or so. Should’ve listen to myself. Trading news like that put individual investor such as myself at a disadvantage. Oh well. Live and learn, again. I could have bought a cheaper lense and I’ll at least have a wide angle lense instead of 1000 share of FNM.

I haven’t consent my lost yet. It is my lottery ticket. It might pop up to $2 or even $3 and I can buy my super wide angle lense…a man can dream, can he?

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EUR/USD Pushing 1.40

Since the the government effectively nationalize the GSEs, Chinese and Russian stopped their dumping of Fannie Freddie papers for now. At least, that’s what I heard.

The other macro going for USD haven’t changed:

  • Weak Euro Zone economic data.
  • ECB and British Central Bank’s next move is expected to be a rate cut.
  • US Fed is expected to hike rate next.
  • USD based asset is becoming more attractive.
  • Sovereign wealth funds dumping USD seems to be slowing or stopping.
  • US investors are moving their money back home.
Still loving my EUR/USD short position. 1.40 is a big psychological barrier, but I have a feeling the defenders of the 1.40 barrier (exotic option traders) will be overrun by real money heading home from foreign investments. Trade with the real money.

The Chinese is Coming to Get You

The Telegraph:

The Chinese central bank, one of the most secretive in the world, is amassing shares in many of Britain’s blue-chip companies…In total, investment entities either controlled by or affiliated to the Chinese government now own stakes in at least half of the FTSE100, and probably considerably more…questions about China’s motives are likely to become louder…  (full text)

I have to say that knock off a little of my respect for the Telegraph. So the Chinese Sterling is not as good as Sterling from a US hedge fund? How about middle east Sterling? I don’t think the British as a whole think like that. If they did. Adam Smith must be rolling in his grave right now.

 

I like the comment posted by Peter:

There was once a long established wealthy farmer and his family living off the fruits of the land. A poor family of newcomers moved in to a small rented farmhouse down the lane and, anxious to progress, all the members of the family work for very little wages for very long hours for the wealthy farmer. Over time, the newcomers save some cash from their earnings off the wealthy farmer, who by now is earning a living by doing very little – he lets the newcomers do all the real work. He continues to pay others to do the work while he enjoys his hobbies, cars, boats and holidays. If there is a poor season, he borrows to keep his lifestyle going. There comes the day, however, when the wealthy farmer is no longer wealthy: his land values plummet, he owes the bank money for the borrowings he took out when the land assets were high; and his family no longer know how to farm, still less have the inclination to actually do any hard work. When the bank moves in to demand repayment of the loans and the farm is sold off cheaply, the only people with the cash to buy are……the newcomers.