Friday 16 December 2011

Flat: Positions and P&L

We traded very little this week, merely closing out Gold at 1660 and letting the S&P short run down to 1200 before covering and netting the position into positive P&L.

Opportunities into year-end remain slim. Occasionally we have dabbled into the intraday FX market only to find that the lack of volume and volatility make for weak moves and increased noise. There's no need to waste time and money on this game, we'd rather stay flat and mould a strategy for the New Year, which promises to be at best "eventful".

In the Melting Pot: WBC (WestPac) short, CADTRY long, VXX (Volatility) short until Xmas.

And I can't rule out revisiting the Long Gold / Short S&P trade, now that the basis has widened to near historical highs and technical funding stresses have been eased/unwound.
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