Thursday, May 8, 2008

Pound is Too Heavy! - IFCN Wk 22 -Thu- Equity: $731.23

The British pound is still being pressured due to carry trades being unwound.

The perception that the English economy is not substantially better than other industrialized countries has become realized in recent unassailable reports.

Our FirstStrike trade shorting the Gbp/Jpy at the beginning of the week @ 207.09, w/protective stop at 207.99 – is still alive and well, so far holding over 450 pips in profits. That could change by tomorrow when we have to exit, but the trade so far has shown that there is little strength in the carry side of this pair.

After the trend reversal week in most of the pairs we follow, there is a good chance that we will NOT have any OneNightStand trades on Friday.

The pairs we trade are all an excessive distance from their respective Friday ONS entries.

If we should get a trade somehow, remember that the ONS stoplosses have been changed to 100 pips, up from 55 pips because of increased volatility. You will need to adjust your position size proportionately.

Current equity: $731.23.

The weekly recap will follow after Friday's close.

Have a good night.

Joel Rensink

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