{"id":32,"date":"2012-09-30T15:03:53","date_gmt":"2012-09-30T22:03:53","guid":{"rendered":"https:\/\/blogs.ubc.ca\/mikeniu\/?p=32"},"modified":"2012-09-30T17:19:38","modified_gmt":"2012-10-01T00:19:38","slug":"week-2-what-went-right","status":"publish","type":"post","link":"https:\/\/blogs.ubc.ca\/mikeniu\/2012\/09\/30\/week-2-what-went-right\/","title":{"rendered":"Week 2: What Went Right"},"content":{"rendered":"

1. Result<\/strong><\/p>\n

(1) I\u00a0got a realized loss of $1363.50 by offseting the\u00a0Dec.\u00a0Corn(C2Z).(Price in:768.25;Price out:741.00;)<\/p>\n

(2) I gained $400 this week by taking\u00a0one short on Soybeans.(price in:1572.25;last trading day’s price:1564.25)<\/p>\n

Final Equity last week:$39000.50;\u00a0 Final Equity\u00a0this week:\u00a0$39036.80<\/p>\n

Final gains this week:$36.30<\/p>\n

2.What Went Right<\/strong><\/p>\n

(1)Went short to offset\u00a0Dec. Corn(C2Z)–Right<\/p>\n

I went short\u00a0to offset my contract\u00a0immediately after C2Z price\u00a0decreased from 748.25\u00a0to\u00a0744.75 on Thuesday,which proves\u00a0a very\u00a0smart move,for the next few days experieced a dramatic fall in C2Z price,digging at 705.00.<\/p>\n

The main reason for this drastic drop may be the\u00a0announcement of \u00a0underestimate of\u00a0corn\u00a0production\u00a0addressed by USDA previously.<\/p>\n

But the C2Z price bounced on Friday, locking up the limit up at 756.20,which\u00a0was caused by a new release of the\u00a0USDA crop\u00a0stock report on Friday.\u00a0It seemed like traders\u00a0had overestimated the stock level.So the\u00a0corn price soared on Friday.<\/p>\n

(2) Went a\u00a0short on\u00a0Mar.2013 Soybeans(S3H)\u00a0–Right<\/p>\n

I did this for the same reason as I\u00a0shorted\u00a0on Corn.I anticipated a downward trend for Soybeans due to the USDA annoucement of underestimated production. And there it went. The price were down to 1524 on Thurday.While on Friday,because of the\u00a0surprising stock report,it turned\u00a0back to 1564.<\/p>\n

3. Brief Comment<\/strong><\/p>\n

To sum up, I’m\u00a0basically satisfied with the trading\u00a0result this week.There\u00a0is no doubt that\u00a0USDA’s stock report\u00a0caught\u00a0most traders,including me,off\u00a0guard .But,after all,that’s something\u00a0for which\u00a0you\u00a0should not\u00a0blame yourself.<\/p>\n

References<\/em><\/strong><\/p>\n

http:\/\/www.agweb.com\/article\/stocks_report_delivers_september_surprise\/<\/a><\/p>\n

http:\/\/www.cmegroup.com\/trading\/agricultural\/grain-and-oilseed\/corn.html<\/a><\/p>\n

http:\/\/usda.mannlib.cornell.edu\/MannUsda\/viewDocumentInfo.do?documentID=1079<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

1. Result (1) I\u00a0got a realized loss of $1363.50 by offseting the\u00a0Dec.\u00a0Corn(C2Z).(Price in:768.25;Price out:741.00;) (2) I gained $400 this week by taking\u00a0one short on Soybeans.(price in:1572.25;last trading day’s price:1564.25) Final Equity last week:$39000.50;\u00a0 Final Equity\u00a0this week:\u00a0$39036.80 Final gains this week:$36.30 … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":15009,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-32","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/posts\/32","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/users\/15009"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/comments?post=32"}],"version-history":[{"count":10,"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/posts\/32\/revisions"}],"predecessor-version":[{"id":41,"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/posts\/32\/revisions\/41"}],"wp:attachment":[{"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/media?parent=32"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/categories?post=32"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/mikeniu\/wp-json\/wp\/v2\/tags?post=32"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}