Commodities Essential - August 8, 2011

Alert: risk appetite remains sapped.


Let’s adjust stop-loss levels on CORN and IAU … 


Corn futures are trading just above the support at the 200-day moving average; our position in CORN (Teucrium Corn Fund) remains above support at the 50- and 100-day moving averages. If the risk aversion begins to subside, corn could find reason to rally from here. But considering the global macro environment, growth concerns could spark an even deeper downside move.   


So let’s tighten up our stop to reduce risk should another wave lower commence. 


Gold has surged higher after the US downgrade hampered some safe-haven appeal of the US dollar; additional risk-averse capital is flowing into gold. Our position in IAU (iShares Gold Trust) is moving our way nicely … but it is overbought on several measures and looks due for a correction.   


Let’s tighten up our stop-loss to lock in small gains while leaving us exposed to further safe-haven upside potential.  


Trade Essentials. 


CORN(Last Price: $45.57) 


CANCEL AND REPLACE your order to SELL ALL your shares of Teucrium Corn Fund, symbol CORN, at $41.90, STOP. NEW PRICE: $44, STOP; this order is good till cancelled. 


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IAU(Last Price: $16.60)


CANCEL AND REPLACE your order to SELL ALL your shares of iShares Gold Trust, symbol IAU, at $14.70, STOP. NEW PRICE: $16.30, STOP; this order is good till cancelled.