2011-07-19th (Tues)

At the end of the previous trading session I had the following positions;
Long 300,000 USDJPY with ACB of 79.438
Long 200,000 USDCAD with ACB of 0.96322

In today's trading session US markets found a reason to rally and tommorrow may continue to rally on positive Coca-Cola, IBM, blow out Apple earnings.

Article - "Stocks rebound on earnings, debt-limit proposal - Strong earnings from Coke, IBM send stocks up; Dow jumps 202, its biggest gain this year"
http://finance.yahoo.com/news/Stocks-rebound-on-earnings-apf-595594205.html?x=0&sec=topStories&pos=7&asset=&ccode=

We should expect markets to continue flip-flopping on each piece of news.

In today's Bank of Canada policy announcement it held interest rates constant but with a hawkish position suggesting an interest rate hike next time on Wed Sept 7th, 2011.

To hedge my existing Long USDCAD position I added a Long WTI Crude Oil position to my portfolio.

Buy-To-Open 5 contracts WTI Crude Oil Sep 2011 at 96.360 (2011-07-19, 02:14 am EST)
Buy 5 contracts WTI Crude Oil Sep 2011 at 97.150 (2011-07-19, 03:40 am EST)

Stop Loss Orders were placed accordingly but too tight and I was stopped out at a small profit.

Sell-To-Close 10 contracts WTI Crude Oil Sep 2011 at 97.010 (2011-07-19, 05:53 am EST) for a small profit.

I reviewed this trade with my Coach and understood that I would not have placed my Stop Loss at a lower level as I had demanded a minimum profit for my trade.

Thus there is no significant learning, except if I was mentally willing to place future Stop Losses at break-even point, but never at negative equity for that would imply I should have waited for a lower entry-point.

USDCAD fell as expected and I added slightly to my Long position.

Buy 100,000 USDCAD at 0.95100 (2011-07-19, 08:59 am EST)

Currently I have the following positions;
Long 300,000 USDJPY with ACB of 79.438
Long 300,000 USDCAD with ACB of 0.95915

USDJPY is currently 79.142 (2011-07-20, 00:40 am EST)
USDCAD is currently 0.95067 (2011-07-20, 00:40 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 10% of June 1st and we are committed to trade ourselves back to our High Water Mark.

Stay Tuned,

Jeff
(2011-07-20, 00:41 am EST)