Tuesday, January 6, 2009

Pounds of Coffee

I've been out for a week. Took a 1 day vacation to spend new years in vegas, got back, and I have too much work to explain.

Before I left, Wednesday the 31st, I saw one of the most ridiculous things in the market since I started to trade. The GBP book got swept and moved 350 pips in 30 mins. 350 pips. For those that aren't familiar, a pip is .0001, so a 350 pip move is pretty significant.

The pound moved from 1.47 to 1.435 in 30 minutes. Imagine studying abroad in London and leaving your dorm in Kensington to get to the office in Canary Wharf. If you chose to buy your 2 pound coffee before the trip, it would have cost you $2.94. If you waited until after the trip you would pay $2.87. Talk about inflation.

Moves like this aren't normal, and while we're all waiting for the markets to calm down, which admittedly they almost have, there are events like these that are hard to explain.

I leave you with a song I heard today at work. This didn't make it on Kid A / Amnesiac, a testament to how talented this band is and how good the two albums are.

I'm going to log my songs on the right and create you a playlist. Hopefully I make these posts more regular.

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