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Trend Following Update - New Entries and Exits

We certainly started the New Year off with a bang in the commodity markets. Trend activity resumed early Monday morning with some decent upside moves in Metals, Energies, Grains, and Softs.

We continue to unwind more of our interest rate exposure and liquidated the last of our Long Two Year Treasury Note position this week.


We also liquidated our Short Feeder Cattle position earlier this week:


New down trending activity appears to have started in Class 3 Fluid Milk. Milk has actually been a good trending market for us in the past. We initiated a new Short Position in Milk shortly before the start of the new year; about the time Bloomberg News put out a report that Milk prices are expected to rally 39% in 2010. I wonder how someone can make such a detailed forecast for any market, especially Milk? So far it's off to a decent start.


We've also initiated a new position in Winnipeg Rapeseed (canola) as news that demand is expected to soften. So far this trade hasn't gotten off to the greatest start. We'll give it some time, but if it doesn't move down over the next few days our models will trigger an exit.


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Disclosure: I trade or hold positions in all instruments presented.