Shed about 3K this week, mostly because of coffee. Damn rain in Brazil is killing me.
Anyway a few new entries and old friends revisited:
* The gold contracts were added when Bernanke dropped his pants. Gold broke the important $800 mark and is showing no signs of slowing down. Still a decent entry point if you’re not in the trade yet. I keep waiting for a correction – it has pretty much gone straight up for awhile here – but no signs of one at all.
* Loaded up on Aussie dollars again on Friday. When the market tanked on Thursday, carry trades were unwound which trashed the Aussie. This is getting to be a recurring theme. Anyway, this changes nothing. The Aussies are still going to have to raise interest rates later this year or early next. It’s heading to parity – not a matter of it, but when.
* Bought some Swiss Franc’s on the tip from our buddy Jim Rogers. Great interview here if you haven’t seen it yet with the Financial Times. He mentions the Swiss Franc as one of his top rec’s right now – he says when the carry trade ends someday (and it will), the Swiss Franc and Yen will pop. Saw this on Thu/Fri with the carry trade unwinding – I already have a nice gain on my position.
Also read this from Chuck Butler in the Daily Pfennig: Swiss National Bank (SNB) Gov. Roth, told the press that he will “take the necessary measures on interest rates should the franc’s weakness stoke inflation.” WOW! I can tell you this, he’s directing that talk at the Carry Trade vultures that have preyed on the Swiss franc because of the low interest rates there… Look for franc strength from these words.
* The grains – a crappy week altogether. But these are all just waiting to pop, so we wait. Maybe not this month, maybe not next, but they all have a big run in them in the next few years.
The current positions:
|Current Cash Balance
|Open Trade Equity
|Long Option Value
|Short Option Value
|Net Liquidating Value
Cashed out: $5,000.00
Total value: $85,393.19