Monday, March 17, 2008

Copper in Yen

Adding to my short copper position, correlated with long yen of equal size (creates a bet on the price of copper in yen, as making the trade in dollars creates an inadvertantly bullish position on inflation, which is wrong). I believe this trade has a signifigant amount of room to fall, and the cash that entered commodities as a safe haven from equties will exit copper once the market "normalizes".

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