quecee5,
Benanke speech would, in normal conditions, have sent GU much higher. Fed funds now stands at 90% of a 50 point cut at end of January. With Boe on hold that makes GU a much, much more attractive buy for long term players. The fly messing things up is that most do not believe that BOE is really on hold--only a pause. If we get some news that England's enconomy is not as horrific as many are saying, GU shorts will run for the hills. I am long GJ @ 213.70 simply based on risk reward. If we break under 212.80, I am out for a 90 pip loss. If events happen to spring the retrace, the reward will be a handsome one.
Benanke speech would, in normal conditions, have sent GU much higher. Fed funds now stands at 90% of a 50 point cut at end of January. With Boe on hold that makes GU a much, much more attractive buy for long term players. The fly messing things up is that most do not believe that BOE is really on hold--only a pause. If we get some news that England's enconomy is not as horrific as many are saying, GU shorts will run for the hills. I am long GJ @ 213.70 simply based on risk reward. If we break under 212.80, I am out for a 90 pip loss. If events happen to spring the retrace, the reward will be a handsome one.