Episode 325: Special Crisis Episode – The Swiss Franc Gives Up

by robbooker on January 15, 2015

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Swiss Franc

Hi, it’s Thursday on The Traders Podcast, and this is a special crisis episode, where your host Rob Booker reports on a drastic move (depicted at right) where the Swiss franc gives up. Also: Bitcoin is collapsing, and we don’t know why yet… But Rob speculates. And Jason makes a quick prediction about the Academy Awards Best Picture nominees.

And while you still can, don’t forget to check out Rob’s early bird signup for the newest version of his trading course (releasing this upcoming Friday, January 16) — Trifecta 4.

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{ 9 comments… read them below or add one }

Nate January 15, 2015 at 10:15 am

Crazy moves today! I would love to see the books for some of these brokerages. Undoubtedly, the majority of traders in the EUR/CHF were long and got blown up. There has to be a few that were smart/lucky enough to be short right? Hopefully no brokerage got caught long and now has to liquidate.

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Scott (fatbeetrader) January 15, 2015 at 10:35 am

Super ugly. I feel really bad for people caught up in these trades, I don’t want to seem like a dick as obviously losing money in such a catastrophic manor is a terrible for any trader, but the risks have always been there with swissie trades and unfortunately it’s very ugly, but that’s the playing field we stepped into and the risks we take.

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Brian F January 15, 2015 at 12:12 pm

Bitcoin, bitcoin, bitcoin, you’ve go bitcoin on the brain. You’d have a goop point if were just a marketplace, but it’s not, and that’s why millions of traders are crying into their beers today, the SNB doesn’t have to make market decisions, the markets are secondary to international policy.

What did I tell you, over and over again? Bitcoin challenges the powers that be in modern society. At one time the Roman Empire sat atop the international power structure. During the Medievel period, the Church was the biggest international force, more powerful than kings and sitting atop the pyramid in terms of who called the shots. Later, it was the nation states. Then in 1913, the Fed and it’s counterparts began a slow process of taking over international banking and politics. They built the American Empire and the European Union. Central banking completely controls all aspect of modern society, fiscal policy, monetary policy, politics, news, entertainment, and even which wars get ginned up and fought. That much should be apparant after the last several administrations. There are no markets, no laws, and no rules, just international policy enforced upon us by the people who matter.

Bit coin threatens the very core of the central banks power base, the complete control of the creation of money and our fiscal and monetary policy. There is no way in HELL the most powerful forces in modern society are going to submit to a clever algo and cede their power to outsider entrepreneurs. That’s utterly ridiculous. You must also believe in the Easter Bunny and efficient markets.

Of course Bitcoin is crashing, it was always destined to be destroyed or taken over by the big boyz. A mini example of this is when the Hunt brother’s cornered the market on silver. The exchange members got together, more than half of whom were trapped in short positions, and just changed the rules, hammering the Hunt brother’s with margin hikes. There are no rules, and Bitcoin doesn’t have the power to challenge the whole world’s power structure. this is why gold has hovered in the 1200-1300 level while all the fiat currencies are backed by trillions of dollars of debt that cannot be repaid. It’s not a marketplace. Bitcoin is a short.

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Malcolm Morley January 16, 2015 at 3:40 am

Is what you said true, that the SNB sold all their foreign reserves? Surely what happened is they simply said, we cannot continue maintaining the peg – which by definition means buying more boatloads of Euros?

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ED Salas January 16, 2015 at 5:08 am

Hello Rob & Jason,

I knew you were going to make a special on the carnage made by the Swiss National Bank regarding the Swiss Franc.

I have photos that clearly define the move at 2am PST on my Twitter account
https://twitter.com/TrueHedge/status/555912278139080704
https://twitter.com/TrueHedge/status/555913029447979008

I agree it’s an A-Hole move in part of the SNB.

Normally moves like this are expected on the Japanese Yen with the Blow of Japan would intervene. But I have never seen anything like this! Like a massive earthquake in the middle of the night.

If you were long on the Swissie, awesome luck. If you were short, No Stop, no amount of free margin available, regarless of the minimum available & allowable broker position size would have saved you from a catastrophic loss.

A lot of traders, brokers, and dealers went ‘belly up’ literally in a blink of an eye…thanks to the A-hole-ic folks over at Zurich.

Well, they can keep their Swatch watches & their cheese…now it’s too expensive to ski over at the alps.

As far as trading is concerned, money management & luck are still the essentials…I am still alive to extract pips from the Forex markets.

Oh yeah, I have taken out all currency pairs that contain the CHF and have put the Swiss currency right next to the Russian Ruble.

Thanks for the 325 episode. Next week, the ECB! Hmm…?!

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Rob January 17, 2015 at 1:48 pm

I can’t see any comments for several months with multiple PC’s & browsers. I see how many comments or add one but I don’t see them anywhere on the webpage. What is going on ?

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producer January 17, 2015 at 11:24 pm

Hi Everybody,
It’s Jason the producer here. We’ve been working with the Comments problem. This is the 6th comment on this episode. Please respond and let me know if you can see all 6 on your PC and Mac and anything else. Thanks!
Jason

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Scott (fatbeetrader) January 17, 2015 at 11:37 pm

hey Jason the comments still dont show up 🙂 http://screencast.com/t/7xmrEqx1u

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Scott (fatbeetrader) January 17, 2015 at 11:38 pm

ps we are now getting notified when the comments are approved or new and that come-through via email but they still dont show up under the page?

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