2011-06-24th (Fri)

At the end of the previous trading session I had the following positions;
Long 20 contracts US WTI Crude Aug 2011 with ACB of 98.6768
Long 35 contracts US Wheat Sep 2011 with ACB of 763.56

In Friday 24th's trading session all US markets fell.  I am watching the S&P500 200-Day Support like a hawk, and also have my eye on the soon to be released PMI data.

The daily soap opera from the Eurozone is getting annoying, with each piece of red herring released by the media tossing the market in opposite direction.  I feel like I am riding the Harry Potter ride in Universal Studios Orlando Florida.

Attending Freedom Trader Intensive by Courtney Smth was the highlight of the week, and I realized how reckless I was in risk management and capital preservation.  As evidenced by the horrific results of this Futures Contracts Portfolio since June 15th, it took only 10 trading days to destroy the gains we made in the month of May.

China continues to buy up the world and plan for its future, some additional headlines caught my eye;

Article - "China eyes Canada oil, US's energy nest egg - China eye share in Canadian oil, America's energy nest egg, but environmental hurdles loom"
http://finance.yahoo.com/news/China-eyes-Canada-oil-USs-apf-273845214.html;_ylt=AsOF4gbff.aQemqT4ku6wxCxba9_;_ylu=X3oDMTFlNW11OW8wBHBvcwMzMwRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNjaGluYWV5ZXNjYW4-?x=0

Article - "Chinese premier visits Shakespeare's birthplace - Chinese premier Wen Jiabao, reportedly a big fan of the Bard, visits Shakespeare's birthplace"
http://finance.yahoo.com/news/Chinese-premier-visits-apf-2416407680.html;_ylt=AsQh_nW.RgsgpgJmrhi_jz6xba9_;_ylu=X3oDMTFlc3E0ZmM3BHBvcwMxNQRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNjaGluZXNlcHJlbWk-?x=0

I am continuing to assess if I should liquidate my positions to Cash, but could not find anything interesting enough to Long or Short.

If I had Cash today, I would Long WTI Crude Oil and Wheat at their current levels, therefore I am maintaining my positons.

Regarding Oil, I consider the recently announced release of 60 million barrels Brent Crude Oil from various Strategic Petroleum Reserves (SPR's) to be ineffective, I wrote more about that in Thursday's report 2011-06-23rd (Thurs).

Regarding Wheat, I consider Global Supply Shortage and Global Demand Increase to be the case, and should push prices higher.

Article - "Commodities Rallying From Worst Streak Since ‘08 on Shortages"
http://www.businessweek.com/news/2011-06-26/commodities-rallying-from-worst-streak-since-08-on-shortages.html

However, the market is proving me wrong and I am losing money in both positions.

Currently I have the following positions;
Long 20 contracts US WTI Crude Aug 2011 with ACB of 98.6768
Long 35 contracts US Wheat Sep 2011 with ACB of 763.56

US WTI Crude Aug 2011 is currently 90.675 (2011-06-27, 00:03 am EST)
US Wheat Sep 2011 is currently 653.00 (2011-06-27, 00:03 am EST)

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

Total equity is 4% of June 1st, and a major humiliation.  We gave back all the gains we made last month.

Stay Tuned,

Jeff
(2011-06-27, 00:04 am EST)