I was unable to give a full narrative last night, so tonight I will spend some extra time describing what is happening with the BLOG, and give also a slight flavor for what is transpiring in the markets.
As you may know, we ran a clip of the Great Jim Rogers over the weekend. He is one of the best predictors of the markets usually many years before the rest of us "get it." Well, he is about as bearish on the U.S. Dollar as anyone I've heard, but he said that there could be a short rally. Why? Because 97% of investors were bearish on the Dollar, and he says that when such contrary extremes are reached, the opposite is usually true. Another example would be extremely bearish sentiment right before a great stock market rally. Well, you get the point.
At the time, everything looked bleak for the Dollar, just as things usually do at a bottom. We were, and still are, long the Swiss Franc and the Japanese Yen. Yet, tonight, I get signals to sell short the Euro and the Canadian. Are the numbers vindicating Jimmy. We'll see.
In any event, this hasn't been the best of weeks for the BLOG. We got stopped out of Gold in one night (Dollar strength) and didn't follow Silver or Platinum signals due to contagion risk. Our short cocoa position improved slightly. Our long Swiss improved slightly. Our long Japanese Yen worsened slightly.
We were stopped out of Soybeans with a loss, and didn't follow the Soymeal signal since it duplicated the Soy. We were stopped out of Sugar with a loss in an intra-day downturn, only to find that Sugar completely recovered on the day. That hurts! This is another commodity that Rogers says is under-valued.
We went long Wheat, it plummeted, then recovered. Now it is above yesterday's close with a stop that hopefully will lock in our profits. Grains gap; however, so nothing is "locked in."
Well, that's it for tonight from the peanut gallery. Have a great day!
Any questions are always welcome!
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