This week got to be one of my most difficult week, as gold broke new records again. Every little dip is a preparation for another bull run, having repeated this again and again for the past few months. In fact, it became so unbearable that I thought of cutting losses for my GBP and XAU, keeping enough ammo for my DOT which I still have hope for a good bull run despite current weaknesses. A quick calculation revealed that cutting out GBP and XAU will incur me a loss of about 7000 USD, but my DOT has limited downsides and far more upsides, which in a bull run have a good chance to cover back my losses.
In fact, I was really close to cutting an arm away in order to save the whole game, as I do not know how far more the XAU will continue to rise. It did still rise in the end, but the week was slightly better for DOT, which slowly rose from 4.2 to about 4.8, balancing out the increasing losses of the GBP and the XAU and keeping me barely afloat. I remain confident that the XAU will fall, but I am not so confident in my account’s ability to tank much more losses. It has gone way beyond my expectations of a maximum of 2500.
Three Gorges (600905) had risen back in price after a fall to the near 4 RMB mark, much to my dismay. I had very much wanted to sweep in another 1000 to 2000 shares at the low, but unfortunately the funding for it went to my short term trading account to tank the XAU and GBP losses. Can only tell myself that I have lost this chance, and to either wait for the next one, if it ever comes again, or to look at other shares.
I made it a point that the funding of my long term investment (shares) and short term trading (forex and commodities) can only come from my side income, which takes in about 1000 SGD per month. It used to be at about 2000 SGD per month, but unfortunate things happened and I was forced to shut down my online business. I do not touch my main income because I am saving up for other uses.
Data this week (downloadable in the section below) showed that XAU longs continued to increase, and although XAU shorts increased lesser in absolute terms, percentage wise it certainly increased significantly at 20%. Week after week, I hope that the situation will reverse, that the GBP and XAU will fall and the DOT will rise. I know that the day is coming, and I certainly hope that I will still be able to tank it though and make a good sweep out of the whole thing.
Welfare pack for this week:
Download this week’s CFTC Commitment of Traders (big monies) analysis here.
Read more on what is the CFTC Commitment of Traders report.
Do note that the financial markets are volatile and unpredictable. The above report is only another set of tools to help with our analysis, and by no means is a 100% indicator as to what will follow. It should be used together with other necessary research which a trader or investor should do.
