There was no follow through of the correction of yesterday, so my hope of a better entry to go long was dashed while my doubts for any lower prices were proved correct. But tomorrow is year end quadruple witching and lots of shenanigans will go on, even without any input from the fiscal cliff drama. Come to think of it, we are days away from the cliff and no resolution is in sight. And yet there is no panic anywhere. Remarkable to say the least. I am waiting for the cycles to bottom before deciding the next course of action. I have identified a number of shares and ETFs which I think will yield spectacular returns in the coming months.
I closed the short trade in silver today. While cycles still did not bottom, I think there is not much juice left and whatever little downside is there, better leave it for the next guy. It is called the greater fool theory. We don't want to be the last guy holding the can. Gold fulfilled my price target and I do not have any lower target for gold. Just waiting for going long.
The wheat trade, which I did not take because wheat did not cross $ 820, was cancelled today when it closed below $ 800. I do not think there is much downside in wheat but why take any chances. Better opportunities are coming up soon.
Crude is consolidating around $ 89-$90 range and let us see how it behaves in the next few days. Something very interesting in brewing the the oil fields which has the potential of an explosive return on investments.
It was a good decision not to short Nat. Gas because cycles did not top yet. Today we saw Nat.Gas go up and I think it might challenge $ 3.70 level soon. But the preferred trade in Nat. Gas now is on the short side and I am waiting for the cycles to top.
This coming Sunday will be the last free market report. 2013 will be an exciting period for investment / trading and I am sure we will do great.
Thanks for sharing my thoughts and good luck with your last minute holiday shopping.
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