2011-07-22nd (Fri)

At the end of the previous trading session I had the following positions;
Long 300,000 USDJPY with ACB of 79.438
Long 300,000 USDCAD with ACB of 0.95915

In today's trading session technology stocks led the rise in NASDAQ.

So far US corporate earnings are not skewed to the good or bad side, and to some analysts that is a surprise, for there is legitimate concern that earnings down the road may suffer.

I acknowledge the US economy is not at its best now, but I believe the US people have the resolve to pull out of their bad situation.  For this reason we continue to invest in their market with reduced exposure but would never pull out completely.

We continue to Long USD against CAD and JPY when both economies are at an advantage over the US now.  The media is building up to a climax of negativity and this sentiment is hard to ignore, but examining my previous notes and data points continue to point me to the same trade decisions.

I may not be able to correctly derive the direction of the currency pairs on a daily basis, and I wonder if there is on Earth any trader that can do so.  Therefore I continue to management my total value at risk levels so daily fluctuations do no destroy our equity completely, and accumulate positions slowly to a maximum acceptable amount.

Next week is opportunity for some wild swings in the USD, today seems to have hit the point where negotiating parties leave the table due to frustration.  For me it means taking time off for each party to find ways to save face and come back together later, and before Aug 2nd.

Article - "Boehner withdraws from debt talks with Obama - Talks off: Boehner says 'couldn't connect' with WH; Obama says GOP must find default solution"
http://finance.yahoo.com/news/Boehner-withdraws-from-debt-apf-3051861922.html?x=0&sec=topStories&pos=7&asset=&ccode=

We are positioned to gain nicely if US Debt Ceiling talks turn well, if they do not our exposure will not ruin us either.

In other news, the daily speculative theatrics continue, and we can expect markets to continue flip-flopping on each piece of news.

Article - "Dollar up against euro as aid plan digested - Dollar regains some ground against euro as investors mull impact of Greek aid deal"
http://finance.yahoo.com/news/Dollar-up-against-euro-as-aid-apf-3133313699.html;_ylt=As1hMOeXYaTHpjgB7ikb5Wuxba9_;_ylu=X3oDMTFlMDhhaWFjBHBvcwM5NQRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNkb2xsYXJ1cGFnYWk-?x=0

Article - "Oil settles near $100 - Oil settles near $100 a barrel on US debt issue, 2nd Greece bailout deal reached"
http://finance.yahoo.com/news/Oil-settles-near-apf-1930874315.html?x=0&sec=topStories&pos=5&asset=&ccode=

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 closed at 78.525 (2011-07-22, 22:01 pm EST)
USDCAD closed at 0.94765 (2011-07-22, 22:01 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 5% of June 1st and we are committed to trade ourselves back to our High Water Mark.

I will use the weekend to recage and refocus on strategy and risk management.

Stay Tuned,

Jeff
(2011-07-22, 22:09 pm EST)