Commodities Essential - August 24, 2011

Alert: gold has tanked.


Make these adjustments to DZZ now … 


This position in DZZ (PowerShares DB Gold Double Short ETN) has been well timed. It is showing open gains of roughly 20% in two days! I think gold still could correct a little further, so I’m not quite ready to exit this position just yet. 


But I do think it is important to lock in some open profits here in case the bulls come in droves to buy this dip. Let’s do this by adjusting our stop-loss order. (Details below.) 


Also, I recommend you place an order to exit this position (or a portion of it, entirely at your discretion) should it hit my initial target. (Details below).


Trade Essentials. 


DZZ (Last Price: $4.67)


CANCEL AND REPLACE your order to SELL ALL your shares of PowerShares DB Gold Double Short ETN, symbol DZZ, at $3.58, STOP. New Price: $4.45,STOP; this order is good till cancelled.  


Then …


Place an order to SELL ALL your shares of PowerShares DB Gold Double Short ETN, symbol DZZ, at a LIMIT of $5 or better. This order is good till cancelled.