While I was writing the post yesterday, news hit the wire that congress rejected this bailout proposal. Actually, it happened just after I posted my comments and I didn’t have time to edit it. Unexpectedly, the house voted against proposed governments involvement in this mess. Considering, that the so called leaders had announced come compromised the day before, this was a shock. I was glad to see there were still some men and women of principle there, not afraid to vote for the right thing. By now everybody knows what happened to stock market, it fell some 777 points, so I’m not going to dwell on it. What was of interest to me, however, also responded sharply. Large moves in currencies, including EUR-AUD, where I had my long position.

While i was considering abandoning this trade and look for greener pastures, this sot up like a rocket and hit my rather ambitious target at 1.7925, for 230 pips. I must admit, it came as a surprise, but I gladly took it. After all, it turned out to be a very good trade.
Our leaders are again talking about some proposal to bail out failing institutions. What all this talk is going to do, is to create even more anxiety and uncertainty. Once again markets participants have to wait for details of new proposal, than vote, etc. We are back to square one, and nobody knows anything. Don’t be surprised if we hear about some joint intervention, including involvement of foreign central banks….
While we are waiting, I placed new order, a buy in CAD-JPY.

I plan to get in at 100.90, looking for 102. Japanese yen got extremely strong yesterday, for reasons mysterious to me…. That’s why I mainly just read charts. Now I’m looking for some weakness in JPY.
Thank you congress, for making my day yesterday.

Mike K.