Wednesday, March 26, 2008
There are a number of people, including Macro Man, who seem to be caught between a rock and a hard place. The problem facing Macro Man is fairly easy to understand....after a couple of months of watching markets as a spectator rather than a participant, it is natural for it to take a bit of time to get back up to speed. He feels as if he's driving up an intellectual sliproad, trying to pick up the speed to safely merge back onto the market highway.
The market environment isn't exactly a forgiving one, either. The macro trends that dominated financial market pricing over the last couple of months seem to have been put in abeyance by the Fed's recent actions; while Macro Man presumes that this is a temporary phenomenon, there's no telling how long it may persist. Recent price action in EUR/USD provides a useful guide to the volume of noise in current market pricing; since Macro Man's first day in the office a week ago, the rate has executed a rather messy round trip between 1.5725 and 1.5350.