Commodities Essential - September 22, 2011

Alert: crude gets caught in the downdraft.


Let’s tighten our stop-loss on DTO …


 


Crude oil dropped by almost 7% today. It is a growth commodity and it is starting to look like global growth just isn’t going to be at levels we expect and require. I think there is more downside ahead, but let’s tighten our stop-loss on DTO (PowerShares DB Crude Oil Double Short ETN) to lock in about 15% on this position, just in case the market deems today’s major sell-off sufficient (for now) in pricing in the risk of slower growth, a hand-cuffed Fed, Europe in distress, and China on the edge.  


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Trade Essentials. 


DTO (Last price: $72.33) 


CANCEL and REPLACE your order to SELL ALL your shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at $57.70, STOP. New Price: $68.90, STOP; this order is good till cancelled.