2011-05-24th (Tues)

At the end of the previous trading session I had the following positions;
Long 130 contracts Copper July 2011 with ACB of 409.26
Short 10 contracts Wheat July 2011 with ACB of 825.00

Buy-To-Close 10 contracts Wheat July 2011 at 780.25 (2011-05-24, 21:41 pm EST) for a profit.

It felt I had carried the Wheat position for ages but it was only opened last Thursday 19th.
This was a good 3-day trade and makes me feel very positive.

Currently I have the following position;
Long 130 contracts Copper July 2011 with ACB of 409.26

Copper July 2011 is currently 404.58 (2011-05-25, 00:05 am EST)

This morning we heard on Reuters from Alastair Wilson who was chief credit officer in Moody's Investors Services Europe that a Greek default would be highly destabilizing and would have implications for the creditworthiness of issuers across Europe.

This was a restatement of common knowledge.

To me it was the reason why EUR fell and USD rose yesterday, and caused a significant drop in our portfolio value.

I am still studying the Goldman Sachs / Jeffrey Currie report, how it relates to their previous April Report, the timing, and the intended audience.

There was talk that the purchase of 50,000 Gold August to September Call Options between $1500 to $1800 Strike Price costing $50 Million in Call Premium would likely have come from a Central Bank or Sovereign Fund.

I think it is highly unlikely that any party would place an unhedged bet of $50 Million.

I will be looking for past Put buying to complete the other leg of the straddle.

I will be looking for existing Short positions that needed the Calls as portfolio insurance.

I will be looking for change in institutional holdings of GLD, and we know Soros sold his lions share (2011-05-16th (Mon)) and may have gone Long or Short subsequently.

Prices moved to my advantage in today's trading session and our account equity has recovered significantly.

With our first line of credit activated on 2011-05-05th (Thurs) I have available margin to go shopping if the opportunity presents itself, and I am curious to see if any hands will show before Memorial Day.

Total equity is 121% of May 1st.

Stay Tuned,

Jeff
(2011-05-25, 01:05 am EST)