2011-08-03rd (Wed)

In the previous trading session I had no positions.

I was 100% in Cash.

In today's trading session US markets continue to sell off in the first hours of trading before staging a come back to gain slightly at the end.

Since the magnitude of the come back was not significant I cannot assume that investors have regained confidence, but suspect it is a moderate degree of Short Covering.

It would seem the over whelming skew towards the downside has subsided as the volatility indexes tamed slightly, but I would still say there are more bears than bulls.

Technology stocks will be the first to be bought back when signs of economic slowdown ceases to free fall and appears to stable.

Article - "Dollar against most, investors eye US debt rating - Euro, yen stronger versus dollar; volatile versus franc after Swiss bank moves on rise"
http://finance.yahoo.com/news/Dollar-against-most-investors-apf-3326505081.html;_ylt=AtqVX0lD3zQub3v9m2oW6Yexba9_;_ylu=X3oDMTFlZjJjbWcxBHBvcwM5MQRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNkb2xsYXJhZ2FpbnM-?x=0

Article - "Japan Intervenes to Tame Yen, Central Bank Easing Eyed"
http://www.cnbc.com/id/44012398

I had known on 2011-08-01st (Mon) that the USDJPY may rally for Reuters and CNBC had reported what I thought was BOJ's red herring.

Finance Minister Yoshihiko Noda's reasoning for weakening the Yen was to help Japan be more competitive in exporting cars, and I could not see the net benefit to GDP = C + I + G + Net Exports.

Article - "Japan readying intervention to reverse yen: report"
http://www.reuters.com/article/2011/08/01/businesspro-us-japan-yen-intervention-idUSTRE7704LC20110801

In the past I would have shot first and asked questions later, clearly I am still shaken up.

Ultimately as trader only the trades matter.

My head is still spinning from the beating we took on Monday and our purchasing power was significantly reduced so I am still reluctant to pull the trigger and resume trading.

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 0% of June 1st and we are committed to trade ourselves back to our High Water Mark.

Stay Tuned,

Jeff
(2011-08-04, 01:43 am)