Two Kinds of Commodity Trades
I rarely jump into early Monday morning trades any longer. After seeing the S&P 500 jump some 20 points off the overnight session low, I see even less reason to try and make any moves early this morning. We are seeing the SPDR S&P 500 (SPY) bounce off support and the iShares Barclays 20+ Year Treasury Bond Fund (TLT) hit resistance, so this is a classic wait-and-see if either can be pierced. I would suspect one of the two will resolve either today or early tomorrow, with the other following closely behind.
When we witness drops like the one on Friday with the follow-up selloff in the futures on Sunday night, traders will often start thinking about commodity or alternative positions. For instance, traders may look to gold as a safe haven if they feel Europe will fall apart or inflation will kick up. Some traders, however, may look to the gold miners rather than the precious metal itself. The same can said of oil or almost any commodity....339 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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