2011-06-13th (Mon)

At the end of the previous trading session I had the following position;
Long 15 contracts US Crude July 2011 with ACB of 98.999

In today's trading session the Dow30, Nasdaq, S&P500 all had the same Up-Down-Up-Down intra-day pattern to close near its opening.

It may seem uneventful but the undercurrents are strong, and to me is a signal that Bulls & Bears are in a fight for control, I suspect a change in sentiment is approaching.

Dennis Gartman was a guest on CNBC's Fast Money show and he spoke about the price action in WTI and Crude.  My take from his interview is WTI may continue to go down for a while.

Personally I am afraid to Short Crude at this level, but will continue to add to my Long position; and will do so at wider gaps and smaller lot sizes.  I have placed GTC Orders to capture the spike-downs.

I had an interesting talk with a client tonight, and the conversation led me to Google about China, and I found the following interesting articles.

Civil unrest is an on-going issue with economic development.

Article - "Police Use Tear Gas to Quell Riot in Southern China"
http://www.cnbc.com/id/43375892

A small portion of the population must achieve wealth first before the masses can achieve wealth.

Article - "China’s Cooling Measures Pushing Consumers to Go High-End"
http://www.cnbc.com/id/43213695

Of particular interest to me is the article below.

Article - "China to Clean Up Billions in Local Government Debt"
http://www.cnbc.com/id/43230566

This move by the central government is identical to the TARP, and is an important step for the local Chinese provincial governments to move non-performing bad loans off their books.

Since no numbers are available for analysis it is hard to judge the ripple effects.  If the ocean is large enough, it will be able to dilute one barrel of spilled toxic assets enough so that no fish is poisoned; just do not keep pouring.

Buy 5 contracts US Crude July 2011 at 97.182 (2011-06-13, 15:24 pm EST)

Currently I have the following position;
Long 20 contracts US Crude July 2011 with ACB of 98.545

US Crude July 2011 is currently 97.151 (2011-06-14, 01:11 am EST)

Total equity is 92% of June 1st, and a small drop from previous.

Stay Tuned,

Jeff
(2011-06-14, 01:11 am EST)