Posted on July 4, 2019
Today’s trade is about the commodities as a group – where they’re coming from, and where they’re headed.
We’re going to take a peek at what’s going on with the bellwether Invesco Deutsche Bank Commodity Index ETF (NYSE:DBC), a very good proxy for action on the entire asset class.
And we’ll start with the daily chart for the last six months –
There’s a good bit to parse here, and it goes like this –
Look now at the weekly action for DBC, because there, too, the broader picture is no singsong –
All told, it looks about as good as Whinny the Moth’s chances against Kermit the Mighty.
Today’s trade is a long tongue speculation on further losses for the commodity sector. Unless there’s a quick break in trade tensions on the China front, we don’t see much hope for DBC,
We’re playing it with a ratio-write on the January, 2020 expiry.
A Jew and his Gold recommends you consider selling two (2) DBC January 17th 16 CALLs for $0.45 each and using the proceeds to purchase three (3) DBC January 17th 14 PUTs for $0.30 each. Zero premium is the result.
Happy 4th of July to all you Americans out there.
And many happy returns,