Sunday

TheInflationist Weekend Summary: 270309

Our portfolio is over the 55% mark after last weeks rally. Time to celebrate as our portfolio stands at $62000 after 2.5 months. The Stock Portfolio widget does not incorporate our trading portfolio’s unrealised values. Trades last week recorded a profit of $1880. We took half profit in BJT at 30c after riding it to a low of 15c, closed out some of our long Dow positions which we have held since before the decline. Stocks have made a huge recovery – even though all indicators are on overbought, we feel that a multi month rally is here. We are expecting the markets to pull back – whereby we aim to anchor a firm long foothold. This week we will look to close out some of our short EUR/GBP positions. Three minis are quite heavy. Based on our round number theory, we cannot rule out parity between EUR and GBP. That would make headlines. So we will aim to close some positions this coming week, perhaps leave one to two open. Our EUR/AUD positions are profitable and are close to critical support levels. A break could trigger a massive fall (and more profits for us!).

We are also looking closely at Treasury Bonds. It is the last bubble intact defying any fundamentals or logic. The continued US bailouts and money-printing will continue to support the Treasury Bonds. We will update readers on when we think the time is right. A better way would be to find a natural hedge – we are still reearching. Our thoughts at the moment are to short the USD (against a commodity based country/currency) – so that any significant future purchase of Bonds to push the price up (hence yield down) through more printed USD would be protected by the drop in USD. And if fundamentals hold up, the both short positions (Bonds and USD) should be profitable.

TheInflationist Weekend Summary

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