Commodities Essential - October 6, 2011

Positive fundamentals are exactly what we need before we sell short. Case in point: copper.  


 


Everyone loves a good story. If we get a whiff of a technical corrective bounce (which I would argue we are getting today), a turn towards the fundamentals might be the added fuel needed for a correction to fully materialize before investors get spooked again and new global macro fears retake control.


Commodities Essential. 6 October 2011


 


Trade Essentials.



On Tuesday I recommended placing some stop-in orders to add DTO and ZSL.


 


I recommend you CANCEL the order to buy DTO; details below.


  


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DTO (Last Price: $68.56)


 


CANCEL your order to buy shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, on a stop at $80.70. (Also be sure to cancel the associated stop-loss order on this position should you have entered it.)


 


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As for ZSL, it is possible, if you acted immediately, that you were filled on ZSL since the price did trade briefly through my recommend stop price only a few minutes after the alert was sent.


 


If you were filled on ZSL, then you would have been subsequently stopped out with a loss yesterday after a sharp swing in the price of silver. I will track this as a loss in the closed positions portfolio.


  


But if you were NOT filled on ZSL, I recommend you cancel that open order as well.


 


So, only for those who were NOT filled on ZSL …


 


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ZSL (Last Price: $14.15)


 


CANCEL your order to buy shares of PowerShares DB Silver Double Short ETN, symbol ZSL, on a stop at $18.09. (Also be sure to cancel the associated stop-loss order on this position should you have entered it.)


 


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I expect crude oil and silver to roll over again soon - so I will be revisiting these two ideas. Stay tuned.