2011-05-25th (Wed)

At the end of the previous trading session I had the following position;
Long 130 contracts Copper July 2011 with ACB of 409.26

I was asked seriously about my views on the USD.  I had written about it, and have based my commodities trades partially on the stength and weakness of the USD.

This morning after writing my 2011-05-24th (Tues) report I caught the opportunity to ride the wave.

Short 300000 USDCAD at 0.98000 (2011-05-25, 04:02 am EST).

My trade above reflects my Bearish Position on USD.

In direct contradiction to my stance is the following trade below.

There was talk that a purchase of 25000 June Call Options at $22 Strike Price of the PowerShares DB US Dollar Index Bullish Fund (NYSE: UUP) was done by an unknown party.
http://finance.yahoo.com/q/os?s=UUP&m=2011-06-17
http://www.dbfunds.db.com/USdollar/Pdfs/UUP_Fact_Sheet.pdf

This party's trade reflects their Bullish Position on USD.

This party's trade would have cost them maximum $0.17 x 25000 x 100 = USD $425,000 in Call Premiums.

The reader can decide whether this party believes in their research or not, and only time will tell which trade will be profitable.

Currently I have the following positions;
Long 130 contracts Copper July 2011 with ACB of 409.26
Short 300000 USDCAD with ACB of 0.98000

Copper July 2011 is currently 412.25 (2011-05-25, 23:56 pm EST)
USDCAD is currently 0.9772286 (2011-05-25, 23:57 pm EST)

Prices for both positions moved to my advantage in today's trading session and our account equity increased significantly.

Our first line of credit activated on 2011-05-05th (Thurs) is carrying both positions with ease, and I am curious to see if any hands will show before Memorial Day.

Total equity is 157% of May 1st and it was a good day for me today.

Stay Tuned,

Jeff
(2011-05-25, 23:59 pm EST)