A special Blogging the Commodity Bull Market shout out to my good friend Lance, who works at a prominent New York investment bank.
Lance (name altered to protect the innocent) is a regular reader of our blog, though he is strictly forbidden from commenting whatsoever due to his professional ties.
Via a text message exchange we had today during the late NFL games, Lance provided me with some key insider info: “hope ur long oil pal! dump the dollar”. Lance went on to recommned that I “buy the norwegian krona”.
Though these text messages no doubt were sent after a beer or ten, we give a hearty salute to Lance. And armed with his information and insights, I have indeed covered my short British Pound position, preparing for the next flush of the dollar down the porcelain bowl.
A review of my trades from the week that was:
- Closed out my short British Pound position – twice – I closed out my two short BP positions last Sunday night when the dollar rally looked over. Then the dollar surprisingly bounced back, and I shorted the BP again – and then covered again tonight, after watching it pop up nearly 5 cents since Friday. Both the BP and the Dollar are flawed currencies circling the bowl – the question is, which will circle towards the bottom faster.
- Shorted Soybeans – Beans look like they may want to break down. My research is telling me that a good harvest will put plenty of beans on the market. I’ll quickly exit if beans rally on bullish harvest news.
Other existing positions I’ve got:
- Long the Japanese Yen – So far, so good.
My wish list (waiting for an uptrend):
- Swiss Franc
- Natural Gas
|Date||Position||Qty||Month/Yr||Contract||Entry Price||Last Price||Profit/Loss|
|09/04/08||Long||1||DEC 08||Japanese Yen||0.9340||0.9455||$1,437.50|
|09/09/08||Short||1||NOV 08||Mini Soybeans||1168 1/4||1189||($207.50)|
|Net Profit/Loss On Open Positions:||$1,230.00|
|Current Cash Balance||$54,504.37|
|Open Trade Equity||$1,230.00|
|Long Option Value||$0.00|
|Short Option Value||$0.00|
|Net Liquidating Value||$55,734.37|
Cashed out: $20,000.00
Total value: $75,734.37
Weekly return: -7.2%
YTD return: -1.1%
***”Cash out” mostly means taxes, but lately I’ve also been using it to pay down my credit cards a bit. Why credit card debt? I’m financing a startup and trying to outpace my CC interest rate in the futures markets – kids, don’t try this at home.