Lookin At The Book

OFF THE TABLE - So as you all already know, as per my 'Market Movers' update early Wednesday, I booked profit on my 1.0175 long AUDNZD position at 1.0630, and decided to stand aside and wait for the next opportunity to buy into a dip. I won't be waiting too long. But given how extended the market was at the time of exit on Wednesday, I thought it prudent to lighten up and take a nice chunk off the table. I have been trading in and out of AUDNZD (always to the long side) all year, and will continue to do so. I talked a lot about the fundamentals behind this view the other day, so I won't get into it again now. Still, I will repeat my view that I believe this market has a lot higher to climb in the months ahead, and I will be looking for a push towards 1.2000 into 2016.

ON THE TABLE - The JKonFX Book went private back in August 2014, and into its tenth month, the portfolio has realized profits just shy of 20%. This of course is with little to no leverage. Perhaps even more exciting right now, is that I still have a position open, short SPX500 from 2116. Clearly getting too excited about the prospect of a short equity position is a bit of a fool's game given how relentless the uptrend has been. But even still, I will be looking to see if this short can't get going with a break below critical support at 2040. I believe we have reached a saturation point in the market, where even news of the Fed staying on hold for longer is losing effect. The market has taken just about as much advantage of free money central bank policy as it can, and it may finally be time for stocks to ground after flying so high on borrowed wings. Of course, I say and trade this with a grain of salt.