Very Frustrating Week

MCFX has failed to blog this week. Not due to lack of time; but due to intense frustration. Mainly with his liquidity provider who used the high volatility on Wednesday evening to completely fail in their service provision and hence cost MCFX a lot of money (I won't go into details now as have spent half the week fighting with them). It's not been THE most expensive week - but it's been an expensive one and we are upset to have given back such a large percentage of last week's gains - particularly so when we feel are market calls have been largely correct.

So yet again we finish the week flat risk. Short EURGBP was clearly wrong. But we sold EURAUD at great levels only for our provider to tenuously claim that we should have been stopped out above the highs in the midst of last Wednesday's mentalness - but they only told me an hour after the event when EURAUD was much lower.

We sold EURUSD around 1.3700 which was clearly great. But don't still have the position. Annoying and poor position management.

We got stopped out of GBPCHF right at lows - before it promptly rallied.

And most frustratingly, we got stopped out of our cable long near enough to lows before it promptly went 7 big figures higher! Ouch.

Hmmm....

Obviously the market has yet to make up its mind about what the Fed's plan to buy Treasuries really means. Apart from being inflationary and USD negative. But will stocks continue to rally next week? Today's price action is not very supportive of that idea. We dipped our baby toe into stocks over last 48 hours but are not convinced and so have taken the position off. We'll try to reassess over weekend.

Underlying all our thinking though is that we remain GBP bulls at these levels. And longer-term EUR bears. How best to trade this view is not always clear as EURGBP, while obvious, does not move in an easily trending / tradeable fashion. And overall we like trading from a risk-recovery point of view. Only ever long equities, short CHF, short JPY, long AUD, long CAD.

Good luck!