2011-05-31st (Tues)

At the end of the previous trading session I had the following positions;
Long 130 contracts Copper July 2011 with ACB of 409.26
Short 300000 USDCAD with ACB of 0.98000

In today's intra-day trading session we saw a "U"-shaped pattern for the Dow, S&P500, Nasdaq markets.

All three markets opened, proceeded to trade low, and recovered to close near its opening levels.

It was very interesting to watch, and perhaps may be a sign of a change in sentiment.

The USD continued to drop, of interest to me is the low $2.4 Trillion proposed increase in the US Debt Ceiling which has already been defeated.

Article - "House rejects debt limit increase without cuts - Republican-controlled House rejects debt limit increase in move to press for deficit cuts."
http://finance.yahoo.com/news/House-rejects-debt-limit-apf-2784084181.html?x=0&sec=topStories&pos=7&asset=&ccode=

Personally I was expecting a proposed increase of $5 Trillion, bringing the new US Debt Ceiling to $20 Trillion, and some may argue this number is too small or large.
http://www.usdebtclock.org/index.html

Ultimately as a Trader only the trades matter;
Buy-To-Close 300000 USDCAD at 0.97200 (2011-05-31, 02:43 am EST) for a profit.
Buy-To-Open 500000 USDCAD at 0.97000 (2011-05-31, 09:02 am EST)

The above trades reflect my Thesis that a Bear Rally of the USD is due; due to a much less proposed increase in the US Debt Ceiling, and the Eurozone situation may deterioate soon.

Currently I have the following positions;
Long 130 contracts Copper July 2011 with ACB of 409.26
Long 500000 USDCAD with ACB of 0.97000

Copper July 2011 is currently 417.70 (2011-06-01, 03:02 am EST)
USDCAD is currently 0.96781 (2011-06-01, 03:02 am EST)

Our first line of credit activated on 2011-05-05th (Thurs) has been fully repaid to the bank with interest.  We no longer need the extra margin as our positions have been trimmed in size, and have grown in value.

We end May 2011 with total equity at 185% of May 1st., and we are very pleased with the results.

Stay Tuned,

Jeff
(2011-06-01, 03:06 am EST)