Commodities Essential - March 22, 2011

Say I wanted to go contrarian for a moment, would I be justified in doing so by saying that China’s micro-managing efforts are nothing new and amount to the “hard on the gas, hard on the brake, hard on the gas, hard on the brake” economic management that China has become known for over the last five years or so? What if I suggest China’s pending struggles to shift growth from investment to consumption will throw a wrench into Beijing’s micro-managing efforts?

Is China’s economy set to collapse? No. 

Sure there could be some black swan event lingering out there that comes along and brings economic doom to the Dragon, but we have no way of predicting that. With current monetary measures and the need to rebalance their growth model, I believe Chinese growth will wallow somewhere between less-than-expected and just-fast-enough.

Will China continue to demand commodities? Of course. They will remain the major player. But … 

Commodities Essential. 22 March 2011


Japan’s earthquake and resultant tsunami created a nuclear crisis. Kneejerk fears over the long-term impact on the nuclear energy industry sent related shares reeling. As mentioned before, our position in URA (Global X Uranium Fund) was crushed and we were stopped out at a larger than expected loss.

Now I think it is time to start picking away at URA again and earn back some of those losses.

URA (Last Price: $15.98)

Buy shares of Global X Uranium Fund, symbol URA, at the market

Then place an order to sell all shares of Global X Uranium Fund, symbol URA, at $13, STOP; this order is good till cancelled.