Risk Taking Appetite. Major Commitments In The Market.

Wednesday, October 14, 2009

My risk appetite is making multi months highs. I couldn`t stand aside the collapse in the Natural Gas Futures and I bought some futures at 2.500. I was looking at a price chart and I am pretty sure that a major rebound is imminent. I had no fear and I bought a few contracts that I plan to carry for a few trading sessions.

I was also looking into some beaten down stocks and I bought a few Hecla Mining (HL) shares. Silver and precious metals in general are trading up big time and I think Hecla Mining (HL) stocks can double in a few months. I also bought some out of fashion Dynegy Inc. (DYN) stocks which I am afraid that I will have to wait a few months to see some real price appreciation. But I read the Fitch downgrade report and I concluded that there is some upside potential to this stock. Besides Dynegy (DYN) was trading at a major support level so I gave it a shot. And while I was looking around the utilities sector I came across Duke Energy (DUK) with a 7% dividend yield so I bought it for income.

Jean Claude Trichet comments were pretty dovish and I suffered on my Euribor Futures. I expected an hawkish statement from the ECB and I got a confused and unclear statement. Anyway the pain will only be temporary as the Euribor rates are trading 20 basis points below the 1% ECB rates. So, I added a few contracts to my short trading positions and I probably got top prices for this move.

Finally the Employment Report will be released tomorrow before the trading bell. I closed my remaning short S&P Futures and I can play the market both sides tomorrow depending on the market reaction to the data.

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