Loading ...I have gone long the pound on the basis that the mkt is misreading how popular Boris will be and that the pound has been sold down to crazy levels on Brexit fears…the whole world is short, so it’s potentially a classic crowded trade.
Today we were about to start breaking above 1.25 to the Dollar out of a nice bull flag formation, which counted up to 1.2580 or so, that would trigger another tgt to 1.2700, which would break long term down trends and thus trigger serious short covering…. When suddenly it all just reversed and the dollar was then rammed higher for the next 5 hrs….no way does a real mkt do that….and then it came to me…there is a massive Long Dollar possy out there….which if it starts to go, would be a rout in no time…..where else can u go, but to PM’s because all the other currencies are shiite and most have negative rates.
That is what they are trying to protect.