2011-06-20th (Mon)

At the end of the previous trading session I had the following positions;
Long 25 contracts US Crude Aug 2011 with ACB of 98.6768
Long 35 contracts US Wheat Sep 2011 with ACB of 763.56

In today's trading session US markets rose on improved sentiment that the European financial crisis may be contained.

European Union officials in Luxembourg said today that the EU would take steps to prevent Greece's debt problems from affecting other struggling countries like Ireland and Portugal.

I am confused the markets rose because my understanding is Eurozone finance ministers postponed a decision on a vital installment of rescue loans needed to avoid bankruptcy next month.

Jean-Claude Juncker, Prime Minister of Luxembourg, said Greece will get the next EUR $12 Billion of the previously promised EUR $110 Billion bailout package in early July, but only if it manages to pass additional EUR $28 Billion in new spending cuts and economic reforms by the end of June 2011.

A rising market is only possible if participants know in advance that those proposed reforms will be approved.

Otherwise the spike is irrational, and shall reverse Imminently.

WTI Crude Oil improved slightly as a result of EUR relatively strength to USD.

US Wheat fell as loss provisions were reduced and farmers may see a better crop yield.

Currently I have the following positions;
Long 25 contracts US Crude Aug 2011 with ACB of 98.6768
Long 35 contracts US Wheat Sep 2011 with ACB of 763.56

US Crude Aug 2011 is currently 94.460 (2011-06-21, 02:18 am EST)
US Wheat Sep 2011 is currently 697.38 (2011-06-21, 02:18 am EST)

Our first line of credit was activated on 2011-06-16th (Thurs) to maintain our positions.

Total equity is 44% of June 1st, and a slight increase from previous.  We gave back all the gains we made last month.

Stay Tuned,

Jeff
(2011-06-21, 02:18 am EST)