Thursday, August 27, 2009

Readings, natural gas, Bernanke

Some readings tonight:
- SEC warns investors on leveraged ETF holdings

- What the stress tests didn't predict

- Stiglitz Calls for New Global Reserve System

- Emerging Markets in the New Normal

EUR/USD still stuck below the resistance at 1.4400. Time will come to go long. We just need to be patient.

Ben Bernanke was reappointed as head of the Federal Reserve, meaning to me that we will go for high inflation in the USA in the years to come as Bernanke will probably keep interest rates too low for too long, which will induce a reflation of asset bubbles everywhere.

I added to my portfolio a small position ($2500) in natural gas through the UNG ETF at a price of 11.50$. I plan to invest $2500 more if UNG falls to $10.0, then $2500 more if price of UNG goes to $8.5 and again $2500 if it goes to $7.0. Natural gas price has reached a 7 year low and the ratio of crude oil to natural gas stands at 25 to 1, the highest level ever seen in 19 years! I expect to hold this trade for several months, maybe even more than a year.

Will be taking some time off this Thursday and Friday and will be back at my trading desk on Monday.

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