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Intermarket/Arbitrage warning

Posted: Sun Jul 05, 2015 10:14 am
by stephan
In event like the past days and the coming days we have seen the relation between CNY and USD breaking down. This is happening because the CNY market is becoming an little unstable at the moment. This is nothing to worry about directly, but if you have use the intermarket capabilities then you might get false signals.

The advice for the coming days is break with the intermarket principle. So do NOT track CNY and respond at USD elsewhere because the chance of getting false signals (thanks to CNY movement) is becoming big. It now better to track USD and respond at USD or track CNY and respond at CNY.

BTW We call this principle intermarket, however to some other people its also know as arbitrage. So please do not mind the name, mind the principle thats used.