2011-07-26th (Tues)

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 US markets continued to fall due to worse than expected housing data and the impasse of its debt ceiling talks.

Article - "U.S. Housing Prices Rise Slightly, but Remain Weak"
http://www.nytimes.com/2011/07/27/business/economy/home-prices-ticked-up-in-may.html

Republican John Andrew Boehner continues to battle Democratic President Barack Hussein Obama II in political jousting over the details of the debt deal.

Article - "Boehner delays vote on his debt-ceiling measure - Boehner delays debt measure vote after estimate finds it would cut spending less than thought"
http://finance.yahoo.com/news/Boehner-delays-vote-on-his-apf-2084906714.html;_ylt=AmmLdjS8mCGLLyVK8MkdP22xba9_;_ylu=X3oDMTFkN3RiYzRwBHBvcwMyBHNlYwNuZXdzSHViQXJ0aWNsZUxpc3QEc2xrA2JvZWhuZXJkZWxheQ--?x=0

There is talk that the Credit Rating for the United States of America will be down graded if a satisfactory resolution and a big enough raise of the debt ceiling is not found.  This is very similar to the Eurozone situation, there are differences, but there are similarities.

Article - "DEPARTMENT OF THE TREASURY Debt Limit: Myth v. Fact"
http://www.treasury.gov/initiatives/Documents/Debt%20Limit%20Myth%20v%20Fact%20FINAL.pdf

Article - "Deal or no deal? US downgrade looking likely - Market analysts are beginning to think the US will avoid a default, but lose its AAA rating"
http://finance.yahoo.com/news/Deal-or-no-deal-US-downgrade-apf-3433492877.html;_ylt=ArFncQ7K6Q.LCyOo319hdpuxba9_;_ylu=X3oDMTFlNTcwc24xBHBvcwM5OQRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNkZWFsb3Jub2RlYWw-?x=0

Today (Tues 07/26th) the Treasury auctioned $35 Billion of 2-year Notes.

Tomorrow (Wed 07/27th) and on Thursday 07/28th the Treasury will continue to auction $64 Billion of 2-year, 5-year, 7-year Notes.

Combined this will bring the Treasury Auction to $99 Billion and all Notes will settle on August 1st, 2011 one day before the deadline.
http://www.treasurydirect.gov/RI/OFAnnce

I expected PIMCO to come out and make some kind of positive commentary to cheer up the market.

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 at 77.821 (2011-07-27, 00:46 am EST)
USDCAD is currently at 0.94283 (2011-07-27, 00:46 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 -2% of June 1st and we are committed to trade ourselves back to our High Water Mark.

Stay Tuned,

Jeff
(2011-07-27, 00:47 am EST)