25 February 2011

USDX : Locking in Profits

  • Short at average price of 79.00, initiated on 11Feb11 and added on 16Feb11.
  • 1st objective at 76.88 within reach now. Just took profit on 50% of position at 76.97.
  • As indicated, am in risk reduction mode now, trying to lock in profits on naked core positions (Rule #12 Substance Over Style) even if trades not technically run their course yet.
  • Yesterday's big daily reversal in Crude (= Libya trades unwind, at least temporarily) probably means losses my hedges (short USTs) are going to be much reduced soon. So lock in profits on core now, and wait to lock in reduced losses on hedges later. After the latter, voila, solid out-performance.
  • Longer term objective on USDX remains at 75.63. Sell any decent bounce.

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