Yes, this is not a typo. The dollar rose strongly today against all the major currencies on the strong likelihood of the Health Care Bill being passed this Sunday. Why? Because the Congressional Budget Office (CBO), a "neutral" party that estimates the cost impacts of legislation in Washington, said that the Bill will positively impact the U.S. deficit. Again, why? So far as I can determine, based upon various sources, there are some things in the Bill that are financially positive:
1) higher taxes offsetting the benefits in the plan
2) stricter controls on medical tests performed by Doctors
3) Federal takeover of the Student Loan Program (yes, the Health Care Bill has Student Loans in it too)
The Dollar gained tremendous ground on the prospect of passage. As a result, most commodities fell, and the stock markets fell as well. Ironically, medical stocks were generally up. I am not sure why.
Our portfolio generally fell. The only position gaining ground was the short Euro (long Dollar). There were no positions closed out on the day. The listing of all open positions appears below.
Open Positions Symbol Entry Stop Close Profit
Long Cotton CTK10 70.34 78.40 82.01 $5,835
Long Cotton BAL 34.02 37.88 39.62 16.5%
Long Russell TFM10 608.50 644.70 670.10 $6,160
Long Russell IWM 61.66 64.85 67.41 9.3%
Long Platinum PLJ10 1534.90 1563.30 1608.00 $3,655
Long Platinum PTM 18.40 18.61 19.14 4.0%
Long Aussie ADM10 89.58 90.05 90.70 $1,120
Long Aussie FXA 90.30 91.11 91.77 1.6%
Short Euro ECM10 136.78 136.43 135.29 $1,863
Short Euro EUO 20.20 20.54 20.71 2.5%
Long Gold GCJ10 1124.50 1099.50 1107.20 -$1,730
Long Gold GLD 110.10 107.53 108.28 -1.7%
Long Yen JYM10 110.71 109.51 110.48 -$287
Long Yen FXY 109.40 108.58 109.54 0.1%
For Monday, there are two new signals: buy Sugar, and sell short silver. Note: we are long Gold and Platinum, so this is a contrary signal. Also, buying Sugar is scary because it has been in a protracted decline. In any event, the system thinks sugar is over-sold.
For silver, the symbols are SIK10 and ZSL. The record is 11 wins out of 11 trades for 100%. For Sugar, the symbols are SBK10 and SGG. The record is 34 wins out of 43 trades for 79%. Good luck to all.
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Any views expressed herein are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest.
The quotes and symbols used in the BLOG are believed to be reliable, but no guarantees are made with regard to the accuracy.
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