Weekly Recap: November 2011, Week III

Blog Summary

• Monday - The Grid: October Recovery
• Wednesday - Stocks: It's Decision Time!
• Thursday - Interview: Kyle Bass On BBC HardTalk
• Thursday - Stocks: It's Decision Time - Part II
• Saturday - Credit: Banks And Governments In Trouble

The main focus on the blog this week was technical triangle setup on the S&P 500. I hope some of you trade red it on the downside and collected some profits. It was quite easy to do so, and personally I shorted Silver mid week and covered Friday for a try nice and quick gain. Rest of the focus was turned to the credit markets yesterday, all of which paint a picture of serious troubles and turbulence balance the market has already experienced. However, do keep in mind that markets focus on the future - not the past or present. Therefore, as credit risk remain elevated and sentiment bearish, all we need to see is Europeans engage into money printing and the can will once again be kicked down the road!

Market Summary

Another week, another sell off. Precious metals and Agriculture were hit hard this week. Palladium, Cocoa, Silver, Oats, Cotton and Corn all got beaten down by 4% or more. Natural Gas was also a huge loser, falling over 7.3%. On the positive side we saw the "Safety Crowd" regulars like US Dollar and Treasuries hold their own, but the surprise gainer was Lumber.

Portfolio Update

Portfolio wise, I deserve to do some re-construction. So from now on, the blog will show only the main investments. Trades and quick executions will not be posted anymore. I do not have the time necessary to write that I shorted Silver on Tuesday and than once again write how I closed it out Friday and why. We also tightened our stop loss on Cotton and we are down on that investment a couple of percent at current. Japanese Yen on the other hand has been doing very well.

All in all, it has been quite obvious that our fund has mainly been sitting in cash for months now, but just like majority of other investors out there, we are very eager to get back into risk as soon as we "hear" the right things out of Europe. Our focus is mainly on commodities like Agriculture and Precious Metals. As soon as we open some major investments, they will be posted on the blog and tracked against major asset classes.

Talk Of The Week

Apart from the regular European Crisis chit chat, I have noticed Crude Oil has been receiving a large amount of attention as of late on CNBC and Bloomberg. Therefore, it should come as no surprise why I asked you readers on your opinion when it comes to the reason for Crude's rally. However, looking at the results majority of the readers said that they either didn't know or that it was just a technical rally from oversold conditions. Very interesting...

I hope everyone enjoys the rest of their weekend!