Forex rebates on every trade - win or lose!

" Aug. 29 (Bloomberg) -- Cheyne Capital Management Ltd., a London-based hedge fund, may be forced to liquidate $6 billion in assets backing a commercial paper program after the global credit rout reduced the value of the securities, Standard & Poor's said.

The Cheyne Finance LLC fund, which can hold as many as $20 billion in assets, breached a test based on losses in the portfolio, S&P said in a statement. Cheyne Capital also runs Queen's Walk Investment Ltd., a fund that invested in mortgages and which reported in June a loss of 67.7 million euros ($92 million) in the year ended March 31.

``Even though you are a well-regarded investment vehicle, if you can't roll over your paper and the market is concerned about the asset value of rolling over that paper, investors are not going to refinance you in this environment,'' said Craig Saalmann, credit strategist at JPMorgan Chase & Co. in Sydney. "

And for a good laugh:

"Best CDO Manager: Cheyne Capital" June 2006

"The alternative investment manager has rewritten the rule book in structured credit this year thanks to its breathtaking pace of innovation"

"Established by Jonathon Lourie and Stuart Fiertz in 1999, Cheyne Capital Management has rapidly established an enviable reputation as one of the most innovative and succesful alternative investment managers in the business. It has been in the CDO market since 2002 and now has nine deals under its belt; it has also written CDS trades worth $120 Billion notional since 2003."

Qwento Thanks for that,are you still subscribing to Bootcamp?

Have you come across Big Ben breakout strategy Qwento? Not used it myself but I believe it can prove very fruitful. Like all strategies though, results differ in varying market conditions.

With a little bit of discretion with the CCI you could have taken your pick this morning.

Nice breakout, retrace and subsequent breakout on GBPUSD EURJPY GBPJPY USDJPY and EURCHF.

I really must start trading this ! Can it really be this simple I ask ? Probably not, but I live in hope ;-)

BTW - the setup times for the range are 04:00 to 07:00 GMT. So you need to adjust the times for the various broker feeds. Alpari I have set to 06:00 and 09:00.

Divetime - I forgot to cancel my subscription this month, got the dates wrong. For someone new to Forex I reckon it is well worth a 2 or 3 month subscription.

What they teach is all good stuff, but after a while it becomes very repetitive. Instead of following the market they now give lessons when they think the market is quiet. Once you've heard it a few times it gets boring.

I have also found now with the various coaches that they spend far too much time on why you shouldn't take a trade. Then you find later in the day they took it and banked 50 pips. Blooming marvellous.

So, no, I shan't be subscribing any longer. I still like their 5/8 crossover with Stochastic confirmation. Pretty good for my 3 minute EURJPY chart. And their teachings on Fibs, Intraday Pivots, Confluence and Correlation etc is all good stuff.

I now subscribe to Trade The News (audio and text). I find it very worthwhile and not just for trading actual news events.

It's a few years ago now, but a friend (Jeroo, if anyone remembers him) sent me a link, CCI for Newbies, which I found quite entertaining. Sounded more like a new religion :) It's in my other pc - I'll dig it out if anyone's interested.

From TTN :

Fx dealer chatter focusing on another 'surprise' fed discount rate cut, said to be keeping USD's tone soft this session.

Harlosh - Yes, I have come across the Big Ben strategy.

I believe it is intended for use with GBPUSD, whether it could be applied to other pairs I really don't know.

I can understand the reasons for why it may work though.

I have a pdf file on the strategy. If anybody else is interested in it I will upload it to the web site.

I cannot believe the Yen pairs today. The Fed has everything under control then. DOW 15000 is it now ;-)

The Yen softened throughout the European morning and into NY as Nomura Asset Managements launched two new Japanese mutual funds investing in overseas assets. These Nomura funds attracted about 190B of subscriptions. USD/JPY rebounded from its 113.92 session lows to 115.16, while EUR/JPY ranged from 154.55 lows towards its 157.27 high. Overall the USD was soft against the European currencies as FX Dealer chatter focused on the possibility another 'surprise' FED discount rate cut. Lingering concerns of the subprime issued continued into the European session as Cheyne Finance, managed by London- based hedge fund group Cheyne Capital Management, is set to unwind an $2.5b fund after a drop in the value of its portfolio of real estate-related securities. Also, Australia's Basis Capital Fund ($2B under management) filed for bankruptcy protection in the US. Gold was higher on the back of the weaker USD.

Early FX chatter focusing on rumour of several EU banks announcing subprime losses later today at a press conference. Dealers suggesting perhaps a large German, French bank may announce subprime losses.

BOE lends 1.55 billion at 6.755% Wednesday. No names given.

Well I have to say the markets are all very calm at the moment. Are they in denial I wonder or perhaps they don't read the stuff that I do.

Has anyone come up with a plausible explanation that does not involve the word 'crash' for the 65,000 contracts for the SPX 700 calls ?

I wonder if the party making the monster bet has also read of the $90 trillion backlog of commercial paper that had not rolled over on Aug 23.

Perhaps the commentator that said 'the system is collapsing right before our eyes' was having a bad hair day. It'll be alright on the night - won't it ?

At least Moody's is confident - "banks have sufficient capital to meet needs, threats to the global banking system are overstated". That's alright then, I can come out from under my comfort blanket now !

Edit - I have come across an explanation for the apparent monster down bet :

"So a whole lot of CALLS were sold at very low strikes and a whole lot of CALLS were bought at low prices. The currently quoted price for the 95 Call is 51.40 / 51.70. This means that with the SPY at 146.23 as I write this the SPY is valued at 51.70 + 95 = 146.70. These Calls have a delta of 1, meaning they are very tied to the SPY movement at a 1 : 1 ratio.

So you need to look at the two ways each side of the transaction make money. The buyers make money if the SPY goes up ABOVE 146.70 not down. The sellers make money if the SPY doesn't go up. It doesn't have to come down, they have already made their money by selling the calls and collecting the premium.

On the PUT side, there isn't the same volume at these strikes. There is 1 open interest at 85 for example. The only 'odd' volume is that there are 9494 open interest on the PUTS at 96.

This isn't the doomsday scenario that people describe, but it certainly is very, very weird."

Phew! Cable not for faint hearts at the moment. If you've got it, bank it!

Too right ;)

Forex - Dollar firms vs euro, pound after Bernanke comments; yen gains
AFX


LONDON (Thomson Financial) - The dollar firmed against the euro and the pound after US Federal Reserve chairman Ben Bernanke offered some relief to markets by saying that the Fed 'stands ready' to take further action to provide market liquidity as necessary, The yen gained, however, as the currency benefited from ongoing safe haven flows after Bernanke stated that it is not the job of the Fed to rescue investors.

Speaking at the annual monetary policy symposium in Jackson Hole, Wyoming, Bernanke said financial markets can have economic effects 'felt by many outside the markets'. The Fed will 'act as needed to limit the adverse effects on the broader economy' that may arise from the recent turmoil on financial markets.

He warned, however, that it is 'not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions.'

At 3.17 pm BST, the euro was trading at 1.3637 usd, down from 1.3666 previously, while the pound fell to 2.0118 usd from 2.0163 previously.

Against the yen meanwhile, the dollar fell to 116.11 from 116.30.

Thomson IFR Markets analyst Rhonda Staskow said the remarks have two aspects to them - on the one hand it is positive for markets that the Fed is ready to provide more liquidity as necessary. However, the comment that it is not the Fed's jobs to protect lenders and investors will 'dampen the hope of those looking for the Fed to bail them out'.

'This has fuelled expectations that the impact of the credit crunch and housing crisis will continue in weeks to come,' she said.

jessica.mortimer@thomson.com

jkm/slj

Calendar updated for next week's fun and games -- don't forget Monday is Labor Day in the U.S. (when they don't -- labor, that is).

Bonjour mes amis.

Hols are now over unfortunately, although I'm pleased to report that I'm sans white bits. Have I missed anything this summer?

Looks to me like it's approaching crunch time for the Dollar over the next few weeks. I'll paste up a chart to show what I mean when I get some time this week.

These are the Dollar charts that I promised.

First, Dailies over the last 3 years.



Then zoomed in over the last 6 months with some indicators for good measure.

So what d'you reckon Hils? Or anyone else ...

I have a sneaky feeling that gold might have peaked this morning, and whilst there looks to be further overall weakness in the $ shorter term, there's going to be an almighty reversal.

Gotta dash, I'll post a thingie when I get back.

I don't have a view on anything further out than the 1- and 10-minute charts atm, Choccie.

gbp/usd 4hr chart. my view - looks like its up to me, but we've got a channel forming, and also triple divergence on macd so wouldnt surprise me if we dont see the recent top broken for a ...........? The daily looks up to me...........confusing aint it! Think hilary hit the spot, trade what you see atm