One quick thing to note.....

I don't want you to get confused between yesterday's post of the AUD/CAD carry trade idea and my thoughts in general on carry trades.

Let me clarify...

Most carry trades are doomed this year because of increased volatility in all financial markets...loads of uncertainty at every turn...new "bombs" are unloaded on the market each day recently....this one has to write off "X" billions of dollars....spreads are widening in the auction market...banks are tightening lending...etc.

This is not the type of market for carry trades in general to do well in. HOWEVER, right now..Australia just stepped into a recent "class of its own" as it hiked rates when the rest of the world is on hold or cutting rates.

Canada will be cutting rates quite a bit more and their dollar has to fall more or their exports are going to get killed.

Therefore, that makes this possibly the only carry trade left standing.

So consider that..the one exception to the rule when I speak of carry trades.

Sean Hyman
Editor/Trader
www.money-trader.com