On Saturday I was reading the news that stated the estimated retail figures for Black Friday exceeded expectation, I was looking for a positive response in the stock markets, and hence, long Yen crosses (specifically, GBP/JPY). Much to my surprise, stock markets crashed early Monday, pulling down the pair 800 pips in the matter of hours!

Yikes…. I lost 100 pips when it hit the stop-loss, then continue sliding down to hell. What happened? Turns out, just some stupid announcement that the US economy has been in recession since December 2007, duh! It takes the whole year to figure out we’re in recession? I thought everyone sort of know that already??? Why now? Does that change anything for the status quo or for the future? I don’t think so. So why panic?

Well, that’s the way economic news work on the market, I guess. By the time we find out the negative past, the presence may already be a totally different situation, much better. So a few days or weeks later we may find out that the recession is over (?) Who knows, research and statistics can work either way. So guess what? I’m buying the pair again now, as it seems to be stable at the moment. I can’t be sure some jerk would later come out and sing a stupid song that kick off the market’s mood swing… but it doesn’t matter. Either way I may be able to get back the lost pips.