Week of June 25th, 2007
We finally had an opportunity to clear out the positions we
have been holding since February of this year. Last week, we
had made it back to near even for the year and we were looking
to see if we could get some profit by holding a little longer.
The market did not cooperate, however, and we found ourselves
back down over 10% the next day. Through this week, we fought
our way back to almost even again The market conditions did not
look good for the positions we were holding, especially the USD/CHF
which seemedlike it hit a wall when we missed our exit by 1 pip around
1.2475 and analysts were expecting a possible tumble of 800-1000 pips.
We felt the risk was too high at this point to hold any longer
and we had met our main goal of bringing the accounts back even
for the year after a 52% unrealized draw down. Hindsight is 20/20,
but it seems we made a good decision as the market went further
against us and we would now be down about 15% if not more.
Now, you can see what our strategy can do in a relatively short
amount of time and we survived the worst market conditions for our
strategy. Looking forward, we will re-allocate our core positions and
look to make the same types of gains we showed these past couple
of months until the end of the year. If this happens, we can
potentially still come out of 2007 with a nice annual return
through a market storm that saw many traders (pro and amateur
alike) lose their entire accounts. We also announced that we
are switching brokerage firms. Velocity4x had an NFA complaint
filed against them alleging many NFA violations. Even though
we would expect Velocity4x to do everything in their power to
stay compliant and rectify the situation, we don't feel it's in
our client's best interest to stay with them. We have decided
to move to FX Liquidity for many reasons. They have a clean
regulatory record, they are highly capitalized at 30 million
of net capital (the NFA requirement is 1 million) and they give
us pass through volume, good swap interest rates and the ability
to hedge our positions. We feel this is a good fit for us and
our client's long term. One of the challenges we saw with Velocity4x
is their net capital requirements were under the required 1
million for a time (and that is one of the alleged NFA violations
against them) although now it is above that level at 1.5 million.
However, we don't feel comfortable when a firm's own capital
reserves are significantly less than the client's funds they
hold. An email with the instructions to move your account
was sent to all clients. If you did not receive that or want
more information on the new brokerage firm, please contact
our sales manager, Charles Celebrezze at charles@cambistfx.com
Thanks for your patience through this year and we are happy we
brought these accounts back from this drawdown and look forward
to a bright end to 2007. -DC Bonta
Economic Calendar
Jul 6 8:30 AM Nonfarm Payrolls
If you would like more information on trading with our auto
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Weekly Trade Idea
This Week
We did find a nice short on the EUR/USD at around 1.3500 as
price stopped about 20 pips short of that level and went down
to 1.3416. Then, it went straight up. It is now at 1.3600
and may get caught there.
Last Week
The next major support level of 1.3241 held as price made it
to a low of 1.3264 before heading up to 1.3419. That would have
been a nice 150 pip profit in 4 days. The 10 SMA is still crossed
below the 50 SMA so we expect to find shorts at resistance
levels. The next one should be 1.3500.
If you would like more information on trading with our auto
trade program, please call 888-882-2338 24/7 or visit http://getresponse.com/t/8968104/577168/184560569/
Strategy of the week
Disclaimer: The information and opinions in this report are
for general information use only and are not intended as an
offer or solicitation with respect to the purchase or sale
of any currency. All opinions and information contained in
this report are subject to change without notice. This report
has been prepared without regard to the specific investment
objectives, financial situation and needs of any particular
recipient. While the information contained herein was obtained
from sources believed to be reliable, author does not guarantee
its accuracy or completeness, nor does author assume any
liability for any direct, indirect or consequential loss that
may result from the reliance by any person upon any such
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1StockTradingandInvesting
www.1stocktradingandinvestingsecrets.com
New York
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United States
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