2011-07-05th (Tues)

At the end of the previous trading session I had the following position;
Long 300,000 USDCAD with ACB of 0.96662

In today's trading session the inverse-dollar trade was violated as both commodities and the USD rose.

I am completely at a loss why WTI Crude rose but I am too scared to Short it as I had signigicant losses last week in WTI Crude and it is still crowding my judgement.

So this early morning I played it in advance indirectly by increasing my Long USDCAD position.

Buy 300,000 USDCAD at 0.96226 (2011-07-05, 2:29 am EST)

These articles caught my attention today;

Article - "Moody's downgrades Portugal on fear of 2nd bailout - Ratings agency Moody's downgrades Portugal's debt by 1 notch, citing risk of second bailout"
http://finance.yahoo.com/news/Moodys-downgrades-Portugal-on-apf-1414294635.html;_ylt=As2o6c74xVfgBPozl64u1ZCxba9_;_ylu=X3oDMTFkOTU2bWdkBHBvcwMzBHNlYwNuZXdzSHViQXJ0aWNsZUxpc3QEc2xrA21vb2R5c2Rvd25ncg--?x=0

Article - "Gold, silver prices climb on Greek debt worries - Gold, silver rise as questions linger about latest efforts to aid Greece"
http://finance.yahoo.com/news/Gold-silver-prices-climb-on-apf-2422885325.html;_ylt=AifteF7zDV2r02xLOqk2QlCxba9_;_ylu=X3oDMTFlM2NhcTc0BHBvcwMyMgRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNnb2xkc2lsdmVycHI-?x=0

Article - "Moody’s Sees Much Bigger Local Debt in China"
http://www.nytimes.com/2011/07/06/business/global/06iht-yuan06.html

Article - "Official says China to invest $9B in Brazil - Brazilian trade official says China will invest $9 billion in Brazil this year, half in tech"
http://finance.yahoo.com/news/Official-says-China-to-invest-apf-3738497861.html;_ylt=AjAgxZFYAIEq6xvUMc7ltSyxba9_;_ylu=X3oDMTFlNHZwa2NtBHBvcwM3OARzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNvZmZpY2lhbHNheXM-?x=0

Article - "Brazil trying to curb strength of currency - Brazil to curb strength of currency as real hits highest level against dollar in 12 years"
http://finance.yahoo.com/news/Brazil-trying-to-curb-apf-1422611748.html;_ylt=Avaz_BmxH8MyF2nzaJQ0ABixba9_;_ylu=X3oDMTFlOXE2dnB1BHBvcwM1NwRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNicmF6aWx0cnlpbmc-?x=0

Article - "Obama warns against short-term deal on debt limit - Obama warns lawmakers against short-term deal on debt limit without long-term deficit cuts"
http://finance.yahoo.com/news/Obama-warns-against-shortterm-apf-2441557592.html;_ylt=AneRsg8N92YLdPhCDDObsQqxba9_;_ylu=X3oDMTFkM3UybmxvBHBvcwM0BHNlYwNuZXdzSHViQXJ0aWNsZUxpc3QEc2xrA29iYW1hd2FybnNhZw--?x=0

As raising Interest Rates is not wise at this point, neither should the US have tax-hikes too aggressively for we do not want to trigger a Lost Decade like Japan.

The least undesirable option now is to continue printing money and kicking it down the road.

Commodities will continue to be the vehicle of choice in both a Bull or Bear macro-economic scenario.

Currently I have the following position;
Long 600,000 USDCAD with ACB of 0.96444

USDCAD is currently 0.96287 (2011-07-05, 19:39 pm EST)

Our first line of credit was activated on 2011-06-16th (Thurs) and our second line of credit was activated on 2011-06-29th (Wed).

Total equity is 13% of June 1st and we are committed to trade ourselves back to our High Water Mark.

Stay Tuned,

Jeff
(2011-07-05, 19:39 pm EST)