My month to date results for June 2007:

# closed winning trades : 1

# closed losing trades : 0

Net monthly profit % : 18.7%

This week can be subtitled as “one nice trade, one missed opportunity”.  The price action following the Bank of England meeting was very one directional, and it continues this morning.  Unfortunately, Cable Glider is idle due to the Trade Balance figures that are coming out in about an hour.

I’ve often thought that the only tradable piece of fundamental information is the interest rate spread in a currency pair and expectations for changes in that spread.  With that being said, it stands to reason that Federal Reserve decisions and Bank of England decisions are the most important tradable events.  I’m looking into ways to ensure that Cable Glider won’t be “filtered out” of such events in the future by second tier economic events. 

Missing a trade is no big deal in and of itself.  However, strong directional moves tend to be followed by sideways, consolidating price action which can be damaging to Cable Glider’s equity curve.  This is a fair price to pay if we’ve participated in the gains of the strong directional move, but in this case we have not.  We shall see what next week brings!