The past two days have been interesting. Two major daily papers had headlines touting increased risk of world wide economies slipping back into recession. This morning, Oct 9th, we had Chinese banks increase liquidity. This was friendly for crude oil as we saw a $3.00 bounce today, December crud futures appear to have caught support at the 88.50 level. If you follow along, I was looking for a break down to 87. or even 86, so sadly I am not long any crude to speak of. I may, however, look to buy some 102 or 104 calls on a spec. I wanted to wait, actually, until after the election. However, if you were aggressive, you might price out some calls.
Again, not to beat a dead horse, but I like being short the stock indexes. I did not adjust any short positions. I did not take any profits. I did, however, move the buy stops down so, worse case scenario, we have a push. I still like 13,200 as a downside target. Today’s low? 13,408.
I still am long soybean calls. I will hold them through Thursday’s report at 7:30 AM. A 60 cent move one way or another shouldn’t be surprising, and I am comfortably long. However, because I own calls, I already know the worse case scenario to the downside.
One other position update. The long position in the gold never reached the 1799 level I had been expecting. The high tick was $1796.50, Kind of nerve wracking and disappointing we couldn’t have popped $2.50 cents more… But, bottom line, we are still long from the break out above $1700, and we have good profits. I am not to worried that we didn’t call the top exactly. That’s really a ridiculous feat to try to pull off. We took the meat out of the move. Take profits and head to the sidelines. We settled today at $17.65 down 10 bucks an ounce. Depending on how we trade Friday, I may look at selling gold, looking for a 30 or 40 buck scalp.
Good Trading
CER