I think that general public has become somewhat immune to bad news, at least they don’t seem to get as much attention as they should. In a logical world, news that nationwide foreclosure rate reached an all time high, should bring large market moves, maybe even panic activity. Gold has responded to some degree, but stocks are largely on “idle”. Is it the case that bad news don’t scare people any more?
And this is pretty bad, a record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure. Most worrisome is the increase of default on fixed rate mortgages. In general terms, fixed rate mortgages represent “prime” or borrowers with good credit, as opposed to adjustable loans, which are more associated with “sub prime” borrowers, with lower credit standing. This definition does not apply to everybody, of course, but is representative of the mortgage market as a whole. The foreclosure rate on  fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. This is not expected to abate before the end of the year, at the earliest.
Numbers are growing, in spite of some programs instituted by government and some banks. Spreading unemployment is to blame. While the  new claims dropped last week, number of people currently collecting benefits is highest in records. Banks are less likely to renegotiate terms of loans or refinance them for borrowers without steady income. This is certainly understandable, considering how we got into this mess in the first place, but it paints a bleak picture for the near future.
Just like my trading lately, not much color there neither. Yesterday’s long trade in AUD-NZD was very short lived.

Shortly after an upside breakout, nasty reversal came. Price plunged and I got out with 104 pips loss. I’m leaving this alone.
Yen continues to get weaker, which is great news, since it was something I had been waiting for a while. This is the highlight of the week, which is over for my. I’m going fishing. Friend of mine is an avid angler and talked me into going on a halibut trip. That’s not my favorite activity, but with the weather as nice as it is, why not? We are leaving a litle later today.
Few posts ago I discussed a longer term GBP-CHF trade. 

Price came very close to the buy point of just above 1.75, and retreated today. I like it. This proves that 1.75 area is a significant resistance, which means that eventual move above will be of high importance. This also could provide good buying opportunities on shorter time frames, like hourly. Maybe as early as tomorrow, but more likely on Monday or Tuesday.
There will be no update tomorrow. I plan to be back Saturday night and should be able post something on Sunday before trading resumes. With any luck, it will be a picture of an oversized halibut.

Mike K.