This week’s trading was really one of the challenging I have faced. Because I had no priori outstanding market indicators as to how markets were going to move. The same old news of poor harvest in China, drought in United States and anticipation of its likely impacts guided my decisions.
I would like to acknowledge that though I watched and read the United States government shut-down news, I didn’t think this had a dramatic toll on the futures market. One thing I however saw was that the Agricultural Commodity Funds showed marginal changes and in some cases it declined. For example, Teaucrium CORN declined by 0.12% . This suggested to me that the demand for futures contracts were going to respond in similar manner.
However, considering the currency market, the US dollar, the Great Britain Pound and the Canadian dollar all dropped in value. Metals fell as well. This suggested to me that the fears of government shut-down were beginning to decrease investor confidence.
I accordingly saw that Soybean contracts were declining on futures trade on the 2nd of October. However, the cycles were showing much deeper loops. So I short it by noon. Unlike Soybean, wheat prices were increasing. So I bought 5 contracts of wheat. In all I made 8.39% returns and my portfolio value stands at $108, 192.88.