Spain has returned front and center to the Eurozone crisis. Prime Minister Rajoy has proposed the 2013 budget which is aimed at €13 Billion in cuts while staying away from tax hikes (Spain’s Budget focused on Spending Cuts) which would cripple the fragile economy even more and reduce tax revenues. We have mentioned on Monday that this could be a turbulent week (Another Manic Monday) and markets have started their correction. We saw a short interruption in the downtrend on Thursday, but the last day of trading in the third quarter has produced another red day.
Global growth fears have reintroduced themselves and dumb money investors started to realize that their bear market rally has run on nothing more than hope and expectations. Reality cannot be escaped and while this run was nice, smart money took this opportunity to enter their shorts for the rest of the year.
Monday, September 24th
EURGBP Long Recommendation
We recommended a long position at 0.7970 and a take profit level of 0.8020. This pair has moved higher since we recommended it, but has not reached its take profit level yet. We advise traders to remain in this trade and adjust the take profit level down to 0.8000.
USDCAD Short Recommendation
We recommended a short position at 0.9800 and a take profit level of 0.9760. This pair has advanced since our recommendation and is approaching our second entry level at 0.9800. We advise clients to hedge their open short position at 0.9850 using half the volume and adding to their short position.
Tuesday, September 25th
USDJPY Long Recommendation
We recommended a long position at 77.70 and a take profit level of 78.50. This pair has moved slightly higher, but has not reached its take profit level yet. We advise traders to remain in this trade and adjust the take profit level to 78.20.
GBPCHF Short Recommendation
We recommended a short position at 1.5230 and a take profit level of 1.5130. This pair has corrected and we took profits today at 1.5160 for a gain of 70 pips.
Wednesday, September 26th
AUDUSD Long Recommendation
We recommended a long position at 1.0350 and a take profit level between 1.0400 and 1.0420. This pair reached that level on September 27th and allowed traders to gain between 50 and 70 pips.
Thursday, September 27th
AUDNZD Long Recommendation
We recommended a long position at 1.2570 and a take profit level of 1.2615. This pair has corrected down to our second entry point today and traders are advised to hedge their initial long position using a short position with the same volume and adding to their long position at 1.2515.
NZDUSD Short Recommendation
We recommended a short position at 0.8280 and a take profit level of 0.8230. This pair has moved in and out of our trade and has been essentially flat. We advise traders to remain in this trade as previously mentioned without any adjustments.
Exits from traded of previous weeks
We had some leftover trades which we were able to clean out from our portfolio for smaller gains which freed up more capital for next week and streamlined our portfolio. Below are the exits we were able to realize.
EURGBP Short Position
This position was entered September 7th at 0.7985 and we closed it at 0.7980 for a gain of 5 pips.
USDCHF Long Position
We had two long positions from September 7th and September 13th which we were able to exit at virtually no gain or loss. One position earned us 43 pips while the other resulted in a loss of 43 pips.
EURUSD Long/Short Position
We were able to exit a EURUSD long position from September 13th which was taken at 1.2958 for a minor gain 3 pips as we closed it at 1.2951. We also closed a short position taken on September 9th at 1.2871 for a gain of 22 pips as we closed the position at 1.2859.
CADCHF Long Position
We closed our CADCHF long position at 0.9570 for a gain of 64 pips. This position was taken on September 18th.
We had a total of seven trading recommendations this week. We were able to exit two of those for a gain of 120 pips, while five remain open. In addition we closed five older positions for a gain of 94 pips which bring our total profits for this week to 214 pips.
In addition to the five open positions from this week, our portfolio still has one open EURAUD short position from the week which ended September 7th. This position currently shows a trading loss of 68 pips. We also have two open short positions, one in the EURUSD and one in the GBPUSD, from the week which ended September 14th. Those two positions currently show a trading loss of 73 pips and 19 pips respectively. We also have a GBPCAD short position from the week which ended September 21st which shows a trading loss of 25 pips. We have taken one EURUSD long position in order to fully hedge our open EURUSD short position.
Overview of profits for the week which ended September 28th
- GBPCHF: 70 pips
- AUDUSD: 50 pips
- EURGBP: 5 pips
- EURUSD: 25 pips
- CADCHF: 64 pips
Total: 214 pips
We hope that you enjoy your weekend and that we will see you back on Monday.