Why I’m Covering My Short of the British Pound
Monday, March 1st, 2010Sean Hannon submits:
It is always rewarding when the markets confirm your point of view. By positioning based upon your research, such affirmation makes prices move in our favor and delivers strong gains to subscribers of my weekly newsletter EPIC Insights.
An example is my short position in the CurrencyShares British Pound Sterling Trust (FXB), a proxy for the British pound. As the euro-zone remains engulfed by unfolding drama, the U.S. dollar (USD) has now finished higher nine of the past 13 weeks. While investors concern themselves with determining whether a rallying USD is negatively correlated to stocks and commodities (at times it is and at others not), most are fixated on second derivative movements.
