Story of last week for me was the carry trades unwinding. With the stock markets getting slammed, traders and investors are running away from risk. When that happens, the carry trade unwinds fast and furious.
The Swiss Franc and the Yen, the two currencies that are borrowed for the carry trade, both rallied strong on the unwinding.
Unfortunately for me, the Aussie dollar got slammed from mid-week on. The Aussie has been a beneficiary of the carry trade, so it takes a hit (usually temporary) when this unwinds.
I have to admit I got pretty carried away as the Aussie dropped, and kept buying…and buying…and buying. Thus I head into tomorrow morning with a dangerous 7 positions in the Aussie dollar. Leverage and huge positions like this are very irresponsible, but at least it’s entertaining for you. I’ll be the one at my computer screen watching every tick, wanting to vomit on any down draft.
Here’s hoping for a quick swing up so that I can unload some positions. In case you’re on the sidelines right now, I think 0.91 is a steal for the Aussie – it could rally to 0.93 or 0.94 easily within the next couple of weeks.
| Date | Position | Qty | Month/Yr | Contract | Strike | Call/Put | Entry Price | Last Price | Profit/Loss | Market Value | Action |
| 11/01/07 | Long | 2 | DEC 07 | Australian Dlr | 0.9135 | 0.9117 | ($360.00) |   |
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| 11/09/07 | Long | 1 | DEC 07 | Australian Dlr | 0.9138 | 0.9117 | ($210.00) | |
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| 11/09/07 | Long | 1 | DEC 07 | Australian Dlr | 0.9138 | 0.9117 | ($210.00) | |
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| 10/29/07 | Long | 1 | DEC 07 | Australian Dlr | 0.9188 | 0.9117 | ($710.00) | |
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| 11/08/07 | Long | 1 | DEC 07 | Australian Dlr | 0.9262 | 0.9117 | ($1,450.00) | |
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| 10/31/07 | Long | 1 | DEC 07 | Australian Dlr | 0.9285 | 0.9117 | ($1,680.00) | |
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| 11/09/07 | Long | 1 | MAR 08 | Cotton | 68.97 | 69.31 | $170.00 | |
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| 01/22/07 | Long | 1 | DEC 08 | Cotton | 63.00 | 75.03 | $6,015.00 | |
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| 04/16/07 | Long | 1 | DEC 08 | Cotton | 64.50 | 75.03 | $5,265.00 | |
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| 11/09/07 | Long | 3 | MAR 08 | Coffee ‘C’ | 126.05 | 126.10 | $56.25 | |
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| 03/29/07 | Long | 1 | NOV 09 | Soybeans | 828 | 945 | $5,850.00 | |
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| 09/26/07 | Long | 1 | MAR 08 | Sugar #11 | 10.02 | 10.04 | $22.40 | |
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| 08/11/06 | Long | 1 | MAR 08 | Sugar #11 | 14.50 | 10.04 | ($4,995.20) | |
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| 06/04/07 | Long | 2 | JUL 08 | Sugar #11 | 10.05 | 10.31 | $582.40 | |
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| 08/01/07 | Long | 1 | JUL 08 | Sugar #11 | 10.48 | 10.31 | ($190.40) | |
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| 10/18/06 | Long | 1 | JUL 08 | Sugar #11 | 12.08 | 10.31 | ($1,982.40) | |
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| 10/31/07 | Long | 1 | DEC 07 | Swiss Franc | 0.864500 | 0.8927 | $3,525.00 | |
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| 10/31/07 | Long | 1 | DEC 07 | Mini Gold | 789.2 | 834.6 | $1,507.28 | |
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| 10/31/07 | Long | 1 | DEC 07 | Mini Gold | 797.2 | 834.6 | $1,241.68 | |
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| 10/31/07 | Long | 1 | DEC 07 | Mini Gold | 797.3 | 834.6 | $1,238.36 | |
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| Net Profit/Loss On Open Positions: | $13,685.37 | ||||||||||
| Current Cash Balance | $74,107.28 |
| Open Trade Equity | $13,685.37 |
| Total Equity | $87,792.65 |
| Long Option Value | $0.00 |
| Short Option Value | $0.00 |
| Net Liquidating Value | $87,792.65 |
Cashed out: $5,000.00
Total value: $92,792.65
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