The Chinese stock market has plunged a fair bit in this week after all the hype. If one has took my advice of not borrowing money to invest, but put half of the spare money only in the spot market with the other half slowly averaging down in the event things u-turn, then you will not have been impacted too much. There are many others who went all in with borrowed money and are suffering.
On my side, I had expected the market to continue going up a bit more, hence did not sell any stocks at a local high so that I can buy them back at a lower price. For stocks, I want to be a bit more patient and not sell easily as I am in for the long term, unlike my short term trading portfolio. Nobody knows what will happen to the market tomorrow, and I do not want to risk jumping off and missing the boat just because I am impatient.
On the short-term trading side, gold had a week of falling, only to reverse its direction and suddenly go up on the very last day. I have no idea what happened, whether it was a short squeeze, a last attempt at revival, or simply another run up now that gold had finished another round of consolidation. I remain bearish on gold despite the current negative results. Gold has no more reason to move upwards.
Side trades on silver nett me about 90 USD in profits these week. After closing my 2 silver shorts, I opened a GBP/CAD and USD/JPY short. One thing to take note of is that money has been flowing into the JPY, and after falling for such a long time, the JPY seems to be ready for a comeback. How can we know if money is flowing in? Just compare my analysis on big monies of this week and of that 20 weeks ago. Week over week, the change may not be much, but if we compare it over a longer time frame, the change is evident. JPY will be coming back.
Things remain grave on my short term trading aspect, which frustrates me but at the same time allowed me to learn quite a few lessons. Hopefully things will turn out well.
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.
