2011-07-06th (Wed)

At the end of the previous trading session I had the following position;
Long 600,000 USDCAD with ACB of 0.96444

In today's trading session the US markets continued to rally although the pace was slower than last week.  Personally I was expecting the markets to give back their gains.

I expect to see more significant red herrings of credit reviews from the rating agencies shaking the market.

I continue to go with my Thesis of a US Dollar spike in the short-term, and am looking to Short the EURUSD pair.

WTI Crude price movement continues to elude me, as inventory decreases at Cushing, Oklahoma.

These articles caught my attention today;

Article - "Stock market shrugs off weak service sector report - Stock indexes edge higher, shrugging off weakness in US service sector and Portugal downgrade"
http://finance.yahoo.com/news/Stock-market-shrugs-off-weak-apf-3443650729.html?x=0&sec=topStories&pos=1&asset=&ccode=

Article - "Obama takes on 'tweeters' in Twitter town hall - Obama trades tweets in hourlong Twitter town hall, answering questions at the White House"
http://finance.yahoo.com/news/Obama-takes-on-tweeters-in-apf-1148016144.html;_ylt=AtkgV3eJuc.ckjfe21Orb6axba9_;_ylu=X3oDMTFlOTcxcTQ2BHBvcwM5MgRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNvYmFtYXRha2Vzb24-?x=0

This military strategy makes a lot of economic sense, as aircraft carriers are so much easier to detect compared to submarines.  A fleet of small crews running less expensive but more versatile submarines capable of deploying multiple platforms in a multitude of scenarios is the way of the future.

Article - "Electric Boat hires hundreds of new workers - Electric Boat hires hundreds of new workers, builds new facilities in submarine boom "
http://finance.yahoo.com/news/Electric-Boat-hires-hundreds-apf-3920276798.html;_ylt=ArL5Ce4kXYXGRU1eLftzq5yxba9_;_ylu=X3oDMTFldjV1YTNjBHBvcwM5NARzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNlbGVjdHJpY2JvYXQ-?x=0

I am thinking logistics, and perhaps a more efficient inter-continential transportation network which will take time to morph.  However, I hate following 18-wheelers on the freeway.

Article - "US, Mexico sign cross-border trucking agreement - US, Mexico sign agreement allowing free flow of cross-border trucking"
http://finance.yahoo.com/news/US-Mexico-sign-crossborder-apf-1284720833.html;_ylt=AmiqwypLFgaXRCShQPglXOyxba9_;_ylu=X3oDMTFlN2NzNDNpBHBvcwM5NwRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawN1c21leGljb3NpZ24-?x=0

This legal case will set precedence in ownership of property, especially in the area of circumstances when acquiring such property.  I can see the argument being extended to mortgage foreclosures.

Article - "Pa. family fights US over rare 1933 gold coins - Pa. family on trial over seized gold coins; US says 1933 "double eagles" stolen from Mint"
http://finance.yahoo.com/news/Pa-family-fights-US-over-rare-apf-750938424.html;_ylt=AgB0O0GYG9OGVLjiRNU6Eoixba9_;_ylu=X3oDMTFlczM3czllBHBvcwM1NwRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNwYWZhbWlseWZpZ2g-?x=0

A Stop-Loss Order was triggered earlier in the day.

Sell 300,000 USDCAD at 0.96450 (2011-07-06, 20:36 pm EST) for a breakeven.

Currently I have the following position;
Long 300,000 USDCAD with ACB of 0.96444

USDCAD is currently 0.96594 (2011-07-07, 01:21 am 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 15% of June 1st and we are committed to trade ourselves back to our High Water Mark.

Stay Tuned,

Jeff
(2011-07-07, 01:22 am EST)