Monday, August 5, 2013

Random Commentary

Summing up my open positions right now:  AU short from .891, currently +6 pips, EU short from 1.3262 currently +4 pips, and USDCAD long from 1.0276, currently +93 pips.  I look to hold all of these through the aussie rate decision.  I'll tighten up my stop losses such that unexpected hawkish news from the RBA won't destroy the positions.

*Note: My longer term outlook on AU is certaintly bullish.  I certainly do not intend to hold this position for a long period of time.  I'm merely looking to ride this trend down into what I believe is a certain outcome from the RBA.  On a risk/reward or EV basis, it seems to be easily +EV.

In other news, China recently made a comment about wanting to hold another "bretton woods" conference to discuss and push for redefining the reserve currency.  I don't blame them.  The events since the last bretton woods conference have been a farce.  The USD was backed by gold, and was originally made a reserve currency with that in mind.  Every other word currency was de-facto backed by gold because they were exchangeable for USD.  In 1971-1976, we removed ourselves from that gold standard, giving the world's currencies a big "f-you".  The joke is that we almost single handedly removed every currency of the world from the gold standard and replaced it with a "dollar standard"  based on money that we can print at will.  We got largely got away with this heist without serious consequences from other nations.

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