The pound got absolutely clobbered last night on speculation that the Bank of England might lower interest rates tomorrow morning. There was also news that the UK is considering nationalizing Northern Rock bank if no suitable private bidder emerges. There was also a perfect storm of secondary economic data releases that were weak in Europe and the UK and strong in the USA. Against this backdrop, the dollar strengthened against the pound by over 300 pips and the Cable Glider caught the move and hit a rare profit target, which I set at 4 times the risk (4R). In one fell swoop, the Cable Glider has reached a new equity peak (just barely!). I imagine that the Pound could fall farther, but I’m on the sideline until after Friday’s employment report here in the US.
The US dollar has also overtaken the Canadian dollar in value again as that country’s central bank unexpectedly cut interest rates, and  crude oil prices continue to fall. I can’t help but wonder how many fundamentally oriented traders with poor trading plans who bet on a weakening dollar have already gotten blown up this week. I’ve said it before and I’ll say it again….I love having a technical trading system that will switch directions on a dime.
Now then, with a little bit of smart planning, I think I can sustain this full time trading gig well into 2008 and see what it brings….