2011-05-26th (Thurs)

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 300000 USDCAD with ACB of 0.98000

Today we saw see-saw action in the markets I observe.

EUR weakened against USD due to continued debt crisis concerns.

CAD weakened against USD due to a slight pull back of oil prices due to global growth concerns.

USD weakened due to revised GDP economic numbers, Treasury Prices rose, Yield fell, and Gold increased slightly in USD terms.

Copper is holding at its current level, I believe base industrial metal demand will sustain despite global growth concerns, and the USD helped it a bit today.

The impact of China's worst drought in a half-century is deepening, in contrast to the wet weather in parts of the US's midwest.

One might think that is a scenario to Long agricultural commodities, but I believe the dominant effect is the slowing of the US economic recovery, so Short is my play.

So I took a position in Wheat again.

Sell-To-Open 10 contracts Wheat July 2011 at 825.00 (2011-05-26, 11:35 am EST)

Currently I have the following positions;
Long 130 contracts Copper July 2011 with ACB of 409.26
Short 300000 USDCAD with ACB of 0.98000
Short 10 contracts Wheat July 2011 at 825.00

Copper July 2011 is currently 413.15 (2011-05-27, 00:52 am EST)
USDCAD is currently 0.9770800 (2011-05-27, 00:53 am EST)
Wheat July 2011 is currently 818.50 (2011-05-27, 00:53 am EST)

Prices did not move much in today's trading session and our account equity increased slightly.

Our first line of credit activated on 2011-05-05th (Thurs) is carrying all three positions comfortably, although I will be concerned if any hands show before Memorial Day, which may cause prices to move against me.

Total equity is 160% of May 1st and only a slight increase today.

Stay Tuned,

Jeff
(2011-05-27, 00:58 am EST)