In spite of TARP, other more direct bailouts and continued FED market interventions, American financial institutions, namely banks, find themselves in more and more precarious situation and on the brink of insolvency. Regulators on Friday closed Heritage Community Bank in Illinois, and Security Savings Bank in Nevada, marking 16 failures this year of federally insured institutions. Many fear this could be the fate of nations largest banks.The U.S. government will exchange up to $25 billion in emergency bailout money it provided Citigroup Inc. for as much as a 36 percent equity stake in the struggling bank, greatly increasing the risks to taxpayers as voter unhappiness about the broader bailout program rises. The deal announced Friday by the company and the Treasury Department represents the third rescue attempt for Citigroup in the past five months and clearly demonstrates the scope of the problem. Government is , de facto, nationalizing bank, claim which is strongly denied. Similar rescue plans could be used at other ailing banks like Bank of America Corp. and Wells Fargo & Co. But analysts are skeptical of how effective they would be. One thing is certain- entire US banking sector is in dire need of painful overhaul.
Our services had mixed week, with one making strong gains. However both of them closed February with very good results. Detailed results pages have been updated, including performance graph. See the results below and follow the link for more information.
(Sunday 03.01.2009.)
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Here are the results for last week:
- Daily Pound made 361 pips ;
- Daily Euro gained 63 pips;
Follow the link on the right to view details.
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Last week's results.
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Last week in this corner we suggested a trade in GBP-USD. We were looking to buy this pair. Set up called buying it at 1.4493, with a target of 1.4600. Trade worked out as planned and objective was reached early in the week, for a gain of 107 pips.
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By all accounts this has been very difficult week to trade forex. Most of currencies produced short moves, which reversed or paused in very sharp manner. This led to ever changing market sentiment, with traders switching sides or staying on sidelines to wait this period out. We hope this will end soon, but we are choosing another trade with small target for our next trade of the week.
We are planning a buy in USD-CHF. Plan is to go long 1.1772 with an objective of 1.1880, a little more than 100 pips. Expectation is that market behavior changes to more directional.
WE wish everybody great trading week!
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Once again we must stress that the trades highlighted here are only a small sample of our trades. If you have any comments or would like to obtain more information please contact us at info@spectrumforex.com .
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Risk disclaimer:
Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.
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