Wednesday, October 22, 2008

The Dollar, the Strongest of the Weak..., Today! -IFCN Wk 46 – Wed – $1,402.66

The dollar struck two-year highs against a majority of currencies today as concerns about worsening national economies again challenged investors to pare some more “risky” holdings. Investors are finally understanding that European economies could deteriorate as much as the U.S. economy. Funny how they are actually buying into that “weak” US economy when they sell their currencies and buy the dollar.

What interests me is how these same investors who just 3 months ago were dyed-in-the-wool euro zealots are now dyed-in-the-wool dollar zealots.

The fact that they were so wrong in their judgment before now makes them experts in determining “real” value---TODAY???

Why not pay someone to throw gasoline on the flames? The Bank of England Governor ---Mervyn King, suggested this week that the British economy might be entering the first recession it's seen in 16 years. That didn't help European investor's feeling about holding currencies and stocks in an already depleted market. More selling was triggered.

All of this tumult really helped our FirstStrikePlus trades. The Gbp/Jpy pair had 1550 pips profit at the time of writing this. Impressive.

Too bad the position sizes of the Challenge account are so much smaller this week because of the volatility last week. That is the nature of trading correctly. At least we are in, in the right markets-- and in the right directions.

The current week's FirstStrikePlus trades:
  • Eur/Usd: Short @ 1.3367, stop 1.3538. Trade in progress..
  • Gbp/Jpy: Short @ 174.07, stop 178.65. Trade in progress.
  • Gbp/Usd: Short @ 1.7193, stop 1.7452. Trade in progress..
  • Usd/Chf: Long @ 1.1401, stop 1.1302. Trade in progress.
  • Usd/Jpy: Short @ 100.95, stop 102.47. Trade in progress
FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit) See complete ruleset for effective trade management.

Current trade equity is: $1,408.66
Silver position equity: ($6.00 -)
(Current XAG price: $ 9.44 – 100 unit position average: $9.50)

TOTAL Equity: $1,402.66

Have a good morning.

Joel Rensink

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!

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