August 7, 2010

Trends

“I know that when the Fed first raises interest rates after months of lowering them, you do not see them the next day lowering interest rates. And they don’t raise rates and then a few days later or a few weeks later lower them. They raise, raise, raise, raise…[PAUSE]…raise, raise, raise. And then once they lower, they don’t raise, lower, raise, lower, raise, lower. Rather they lower, lower, lower, lower. There are trends that tend to exist, whether they are capital flows or interest rates…if you have enough discipline, or if you only trade a few markets, you don’t need a computer to trade this way.  
-- John W. Henry