2011-06-27th (Mon)

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 today's trading session all US markets rose in another whip-lash session.  I am happy the S&P500 200-Day Support held today, but I am seeing if it will hold through the soon to be released PMI data.

I saw good news from Bernanke as he announced QE3 in my opinion.

Article - "Fed May Buy $300 Billion in Treasuries After QE2"
http://finance.yahoo.com/news/Fed-May-Buy-300-Billion-in-bloomberg-1457319130.html;_ylt=Ak2_x5xz6bQMxVJZfJMT5vS7YWsA;_ylu=X3oDMTE1aWZlcGNuBHBvcwM0BHNlYwN0b3BTdG9yaWVzBHNsawNmZWRtYXlidXkzMDA-?x=0&sec=topStories&pos=1&asset=&ccode=

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).

To give the reader some perspective;

Daily global oil demand is approximately 89 million barrels Brent Crude Oil (Not WTI).

The amount of Brent Crude Oil (Not WTI) to be released, 2 million barrels per day for the next 30 days, represents 2.2% of daily global oil demand.

The total release of 60 million barrels Brent Crude Oil (Not WTI) covers only what the world uses roughly every 16 hours.

Half of the release, or 30 million barrels Brent Crude Oil (Not WTI) will come from the US Strategic Petroleum Reserve (SPR).

30 million barrels Brent Crude Oil (Not WTI) represents less than two days' worth of US domestic oil consumption and about three days of oil imports.

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

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

Ultimately as a Trader only the trades matter.

I surrended a portion of my positions today even though I still feel if I have cash today I would add to my positions.  I did so because I needed to free up available margin in case the markets continue to run against me.

Sell 10 contracts US Wheat Sep 2011 at 653.90 (2011-06-27, 11:46 pm EST) for a significant loss.
Sell 5 contracts US Wheat Sep 2011 at 654.13 (2011-06-27, 11:46 pm EST) for a significant loss.
Sell 10 contracts US WTI Crude Aug 2011 at 90.57 (2011-06-28, 02:59 am EST) for a significant loss.

Currently I have the following positions;
Long 10 contracts US WTI Crude Aug 2011 with ACB of 98.6768
Long 20 contracts US Wheat Sep 2011 with ACB of 763.56

US WTI Crude Aug 2011 is currently 91.050 (2011-06-28, 03:26 am EST)
US Wheat Sep 2011 is currently 654.75 (2011-06-28, 03:26 am EST)

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

Total equity is 5% of June 1st, and a major humiliation.  We gave back all the gains we made last month.

Stay Tuned,

Jeff
(2011-06-28, 03:29 am EST)