Two Mondays ago, when I returned to my blogging and investing, my account was at $3.2k. Right now it is sitting at $4.1k. That's a bit less than 30% in a week and two days. Of that roughly $900 gain, $320 are still in open trades. This is where things get dicey...
At 9:30 p.m., the Australian C.P.I. will be released. Although this data is pretty late in comparison with inflation data from other countries, it is still likely to to create hefty market movement. The past three quarters, the C.P.I. has failed to meet expectations and has sent the Australian dollar ("Aussie") reeling. After the price movement the past 2 weeks, I'd expect a positive release. Otherwise, the Aussie could be giving back a lot of room. Why do we care care about this? Our currency portfolio is heavily invested in the Aussie. 70% of our portfolio is long on the Aussie, which explains why we gained 30% in just 9 days. I'll be up at this time of the evening. Therefore I'll close or keep my positions open depending on the news.
At 4:30 a.m., April 27, the British Preliminary G.D.P. will be released. Since the Preliminary is the earliest of the three releases (the Revised and Final each follow a month apart) it also tends to have the most impact. While reports from Bloomberg suggest that Britain will meet the 0.5% forecast, sentiment in British media is that this could be the beginning of the recession. Also released at 4:30 a.m. will be the BBA's Mortgage Approvals and the Index of Services. Why do we care about this? Guess where the remaining 30% of our portfolio is at. Yep, we are short on the British Pound split evenly between the GbpJpy and the GbpChf. Price movement in the past three days would suggest bad news for the Sterling Pound but I am not so sure. Therefore, I am going to close my position on the GbpJpy for about 30 pips in 16 hours and half of my position on the GbpChf for about 80 pips in 3 hours. I'm also going to move my stop loss on the GbpChf to break even. That way, I can still let some profits run if he GbpUsd tanks. As for our FMT robot, I'll lower our risk by half so that w do not get burnt too badly if volatility throws our EA for a loop.
Hopefully, I'll be awake by 12:30 p.m., when the U.S. F.O.M.C. releases its Statement and Interest Rate. I'm sure we'll find more than one way to enjoy part of the roller coaster that the release should produce.