2011-08-04th (Thurs)

In the previous trading session I had no positions.

I was 100% in Cash.

In today's trading session US markets continued to sell off and dived at the close erasing the previous eight months of gains to close negative for the year.

In our highest risk speculative commodities futures and forex portfolio I was stopped out of my postions on 2011-08-01st (Mon) and suffered losses.

For now none of our techincal indicators are reading correctly because the front data is skewing all our curves, they all point down, and so will not be useful in catching a rebound.

Although at this moment the Volatility Index (VIX) is parabolic and could be at a point-of-inflection in the near future I do not wish to take the gamble.

So I decided to stay out until I could see some clarity.

I am uneasy what the employment data release tomorrow will do to the market.

If we see no brief relief rally then margin calls will be in full force over the weekend and next Monday will see fresh rounds of liquidation.

The USDJPY pair has caused me great pain as I saw my gains evaporate due to bad Stop Loss Orders on my part on 2011-08-01st (Mon), and it is killing me to get the direction right but botch the trade through bad execution.

Article - "Explaining Japan's Yen 'Repatriation Trade'
http://www.cnbc.com/id/42150232

Article - "How to Trade the Yen Post-Intervention"
http://www.cnbc.com/id/44013717

I am keeping an eye on WTI Crude Oil because it trades more on inventory at Cushing, Oklahoma and less on economic fundamentals, so I will most likely Long this for a rebound.

Article - "Oil near $86 as outlook for crude demand dims - Oil falls to near $86 in Asia as investors anticipate weak US economy, crude demand"
http://finance.yahoo.com/news/Oil-near-86-as-outlook-for-apf-226256381.html?x=0&sec=topStories&pos=main&asset=&ccode=

In case you are wondering BNY Mellon deals only with large institutional depositors and does not deal directly with consumers, so I hope the media will not skew this move by the custodial bank.

Article - "Bank of New York Mellon adds fee to deposits - Citing cash influx, Bank of New York Mellon adds 0.13 percent fee for large deposits"
http://finance.yahoo.com/news/Bank-of-New-York-Mellon-adds-apf-3353726022.html?x=0&sec=topStories&pos=5&asset=&ccode=

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
(2011-08-05, 00:35 am EST)