Commodities Essential - October 4, 2011

Alert: the bounce isn’t happening (at least not yet.)


Let’s place stop orders to add DTO and ZSL.


 


We’re holding two positions, with a relatively small amount of risk, to play for a bounce in commodities. That bounce isn’t panning out. It still could, so I recommend leaving those positions (JJC and CORN) open.


But because investors are still so skittish, let’s place two orders that will get us in on a new, sustained move lower in commodities should it fully materialize now.


That is: let’s place stop orders to add DTO (PowerShares DB Crude Oil Double Short ETN) and ZSL (PowerShares DB Silver Double Short ETN) as a way to capture a potential renewed surge lower in crude oil and silver prices. 


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Trade Essentials.


DTO (Last Price: $79.80)


Buy shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, on a stop at $80.70. This order is good till cancelled. Then place an order to SELL ALL your shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at $75.50, STOP. This order is good till cancelled. 


ZSL (Last Price: $17.62)


Buy shares of PowerShares DB Silver Double Short ETN, symbol ZSL, on a stop at $18.09. This order is good till cancelled. Then place an order to SELL ALL your shares of PowerShares DB Silver Double Short ETN, symbol ZSL, at $16.20, STOP. This order is good till cancelled.