alerts

Alert: adding two new positions.

Let's short SLX and go long AGA.

We've taken some lumps lately as the correction in commodities extended. But I suspect much of that backing and filling is out of the way and fundamentals will dominate price action again. I recommend adding two new positions.

Trade Essentials.

Here is what I suggest you consider doing now:

 

SLX (Last price: $40.54)

SELL SHORT shares of Market Vectors Steel ETF, symbol SLX, at the market. Then place an order to BUY-TO-COVER ALL your shares of Market Vectors Steel ETF, symbol SLX, at $44.53, STOP; this order is good till cancelled.

 

AGA (Last price: $14.80)

Buy shares of PowerShares DB Agriculture Double Short ETN, symbol AGA, at the market. Then place an order to SELL ALL your shares of PowerShares DB Agriculture Double Short ETN, symbol AGA, at $13.77, STOP; this order is good till cancelled.

[For those seeking a non-leveraged way to play AGA, I recommend selling short PowerShares DB Agriculture ETN, symbol DBA, with a stop loss above $30.40. Note: this alternative to AGA will not be tracked.]

Alert: crude oil's bearish fundamentals ready to take over again.

Let's use DTO to play for another move lower in crude oil.

Geopolitics are back on the radar screen, but it seems to me the fundamentals are set to drive crude oil prices lower still. 

While the last few sessions of price action have been dramatic, much of it appears due to a short squeeze after speculators became overly confident in the bearish direction for crude.

But with much of that squeeze over ... and much of the geopolitical squabbling looking like old news ... it seems now is a good time to get positioned for crude oil to make a fall towards $70.

I am recommending you use the PowerShares DB Crude Double Short ETN (DTO)

Trade Essentials.

Here is what I suggest you consider doing now:

DTO (Last price: $49.40)

BUY shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at the market. Then place an order to SELL ALL your shares of PowerShares DB Crude Oil Double Short ETN, symbol DTO, at $38.90, STOP; this order is good till cancelled.

[Note: for those who prefer not to use leveraged or inverse ETFs, consider selling short shares of the United States Crude Oil Fund (symbol USO) with a stop-loss around $39.00 or so.)