Covered Some Stuff

I shut down my screens around 2:30 as things were just perfect for me and I covered some shorts. I covered USO GLD and XME and covered half of my PCU position. My average on PCU is around $105 so I have a small cushion. I’m cautious because I don’t know what Mr. Market will pull out of his hat in the next couple of days, as today was the end of the month. I’ll watch in here and see how it plays out. The USO was a beautiful short as it totally reversed the opening move up, and just collapsed. When oil got near $100 per barrel, which is my trading target on the commodity, i took the profit. 5 points in a couple of trading days is a gift. I think $97-98-110 will be the trading range going forward. XME was good for a short term trade and the volume wasn’t there for me to hold overnight. My target on GLD was around $88.50-89 anyway so I was close. I believe all this stuff is going lower but when I am given volatility that goes my way I have to take it. I posted recently that the main catalyst for my “short the commodity space” thinking was the upcoming G-7 meeting in a couple of weeks. The story there, is a bilateral effort to somehow strengthen the dollar. The talk gained a little traction today with Paulson, and I think that will help the oil/commodity sector continue to sell off in coming weeks. Still a traders market in the space I think. I’m all cash and short PCU small.

In conclusion,this is a weird market. The sellers aren’t defending their space and the longs don’t want to take the hill. Unimpressive at best.

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