Trading the Coming Pop in Commodities

I don’t think its a coincidence that commodities across the board are looking bullish at exactly the same time as the economy is slowing down and the Fed is quietly conducting QE4. Fed bought twice as many bonds this month than their monthly total during QE3. October rate cut odds are at 90%.

I don’t think inflation is going to explode tomorrow but I do think its coming. When the Fed launches their new QE program that will be larger than the first 3 QE’s combined, inflation will definitely tick up.

DBC is not a long term hold due to decay, but it is a good way to trade commodities. I’m researching individual commodity companies to get maximum leverage during this next bull market.

Go take a look at natural gas, soybeans, corn, copper, platinum, silver. They all look ready to take off. The CRB index also looks ready to take off.

The relative strength index shows that commodities have strong support and are gearing up for a bull trend.

Trade active:

4.6% in 2 months for a commodity index. Not quite the 35% of my oil trade, but still good. And to be fair, OILU is a 3x leveraged oil ETF, whereas DBC is not 3x leveraged and also tracks a basket of commodities, so naturally DBC is more conservative than OILU.

If you want more risk then trade individual commodities. Wheat has been crushing it