stocksthatpay.com

Carry Trade Implosion Precipitates Robotic Selling Into Close As 1,055 ES Level Breached

Attempts by carry traders to redeem some P&L after a month of agony crashed and burned promptly, accelerating into the close as the Yen funding unwind killed not just the carry pairs but broader equities. Of particular note is the hurt experienced by AUD longs funded with either USD or JPY.

Carry Traders Start Off 2010 With A Whimper

Following the crowd, and going long the Brazilian Real while shorting the Yen has had some disastrous results for carry traders: starting off 2010 with a 9.2% loss is never a good thing to show your boss. (chart courtesy of Macro Man ) In the mean time the dollar is back to August 2009 levels. At what point will the carry'ers decide to throw in the towel and actually cover losing positions and book the losses