Tuesday 16 March 2010

Hammered

Equities: Stocks up across the board about half a percentage point. Fed rate decision came in as expected. Building permits and housing starts both fell, however the fall was expected, so not a real market shaker.

Currencies: Lots of Dollar selling across the board today, got hammered on my Short EURUSD & GBPUSD positions as they have massively risen against the Dollar. Can't explain this very easily for the Pound, other that general Dollar weakness. Dovish comments coming from the Fed probably contributed to this.

Commodities: Oil reversed previous day's gains, although no longer holding any oil positions. Gold up about 20 bucks mainly on USD weakness (however it never seems to fall on USD strength)

One problem I'm finding is that my P&L tends to be extremely volatile because I am holding positions that are correlated. E.g. short gold and long USD, they tend to make and lose money at the same time. Need to find a way around this.

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