The Dollar is Losing its Grip! -IFCN WK 67 – Monday- Equity: $2,413.69

This morning we got some early strength in the Pound and Euro triggering long FirstStrikePlus trades, carry-over strength in the Gbp/Jpy almost triggered a long position there also.

At today's open I exited my elective long eur/usd trade from last week for a 155 pip profit. There were no OneNightStand trades entered on Friday to be exited this morning.

In the last four trading sessions we have started to see some grudging strength develop, which is actually a better indication of a currency turn-around than a quick, sharp move. That kind of action would tend to indicate a simple reaction.

Nevertheless, the sterling and euro backed off considerably from their highs today. I would have preferred a bit more strength, but the market gives what it gives-- and we work with it.

We came into the week short the gbp/usd and gbp/jpy, but those trades didn't last very long. The trading community focused on comments from Bernanke and some believe that caused the foreign currencies to gain on the dollar. I simply believe that the dollar's strength is grossly overdone and is likely to wane from this area.

Week's beginning equity at Monday's open: $2,485.44 w/XAG =13.05

This morning's action:
*Long eur/usd @ 1.2744 exited this morning's open at 1.2899 for 155 pip profit.
*Short gbp/jpy @ 136.71, stopped at 139.09 for 238 pip loss.
*Short gbp/usd @ 1.3993, stopped at 1.4132. for 139 pip loss.

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The week's current FirstStrikePlus trades:

• eur/usd: Long @ 1.3020, stop 1.2859. Trade in progress.
• gbp/usd: Long @ 1.4171, stop 1.3980. Trade in progress.

FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit)
Trading account equity: $1,711.69

Silver position equity: $702.00
(Current XAG price: $12.94 – 300 unit position average: $10.60)
TOTAL Equity: $2,413.69

This should be an interesting week.

What markets actually do when there is new potential open to them is extremely revealing for the future.

Joel Rensink
www.infiniteyield.com

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