The last week performance was the best so far since I started this blog. My judgment of the market proved to be right in oil and gold. I held my positions at both commodities and prices rebounded. During the week, I reduced my positions in oil as I do not see for oil to move any higher in the short term unless we get a major news from either OPEC or EIA forecast or weekly data. So far, EIA weekly reports on crude oil inventories, the rig count has not played much of a role to move prices.”Largest” player is still OPEC.
I think Gold has a future to move go on further. Market participants are building their positions in gold for safe haven in case anything goes wrong under Trump. I am inclined to hold on to my positions for now.
I also reduced my pound sterling positions after BOE decided to hold the rates steady despite market’s view that they would be risen. I cut back but not a lot. Therefore, still, I am in a loss in Pound. I am thinking what to do with the rest of it. The pound sterling is more volatile since Brexit than Euro.
Further, I shorted SP500 index based on rising unemployment figures for the short term. Instead, the Stock market rose on Friday based on Trump’s new executive order about curbing regulations on Dodd-Frank which gave the boost to financials hence moving the market higher. I might cover my shorts and go long on the stock market. Trump is just starting. There will be probably more actions to move the market higher. So instead of waiting for some calamity to occur, I should ride with the market.