Thursday, April 16, 2009

AUDJPY: Risk Aversion

It's likely, with the bad jobs and housing starts news this morning, that risk aversion will come into play.

Basically, the AUDJPY is a good indicator of fear in the markets these days.

With all that said, I'm still going to watch closely for a bounce of the potential support line. That is likely to be the point that the market decides to rally or collapse for the day.

... continuing ...

I don't see that the market was pricing in a recovery already. There are starting to be some signs that things aren't in a free-fall. The fact that jobs and housing starts aren't good should be a surprise to nobody.

Anyway, what I'm suggesting is that the news may look bad to those that started to buy into a recent rash of good news, but realistically, anyone who knows anything about markets should be waiting on the sidelines to swoop in.

Oops, you can see my upward bias showing again can't you?

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