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The breakdown in the Base Metals ETF (DBB) could very well be sending a “global economic” message! This price breakdown has many implications, which increases the odds the price action of commodities should be challenged. Increases the odds that Inverse oil (DUG/DTO) inverse grains (AGA) and inverse Silver (ZSL) should see higher prices.
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Shared almost a month ago in the chart above that the spread between Copper and the Dollar was reaching extremes which meant it was time to start building positions in the Dollar and harvest Copper/Base metals holdings!!! (see post here) What is happening of late…Dollar Rally and Copper decline!
Some people ask what keeps me up at night? Let me tell you this, I don’t stay up at night thinking about the “global macro situation and the news!” I stay up at night thinking about “what major turning point might be missed!!!” Situations like these take months and years to form and become points of EXTREME OPPORTUNITIES…Don’t miss out on them!
When you see spreads like the one above, please don’t fall into a “NEWS TRAP” let the “Power of the Pattern” be a friend to your portfolio!!!
Belsha…These would be quality plays on a base metals decline for sure. I wouldn’t own them without a stop, unless you can watch them like a hawk!
Would this mean that BOM and SMN would be great trades also?
I’m in Europe and have a particular problems: my online broker only has trailing stops for european values(no stops at all for american values, as a matter of fact). Is owning these ETF’s without a stop too risky?