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JJS

This week has continued where last week left off, as selling across the board continues to plague equities. Tech and financials are leading on the downside as new government regulations and fears over a slowdown in the economy are weighing on stocks. Meanwhile, traders are continuing to seek the safety of T-Bills as protection in this uncertain environment, while keeping a watchful eye on the European situation as well. Commodities have been more mixed as some products such as oil and natural gas, have gotten off to strong starts this week, while others, such as those in the industrial metals corner of the market, have seen some level of weakness to start the five day period.

Against this backdrop, we’ve been forced to re-evaluate some our ETF plays from Monday, and are taking the opportunity to cash out on a position in our all-ETF portfolio that has surged by more than 5% over the last couple of weeks:[hide 4]

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Investors poured into U.S. Treasuries last week as far worse than expected economic data from the manufacturing and housing sectors sent waves of anxiety through equity markets both in the U.S. and abroad. Surprisingly enough, amidst all the chaos even gold failed to climb much higher and the precious metal closed just above $1,540 for the week.

Volatility in the energy market remains abundant as crude oil futures wildly fluctuated between $98 and $103 a barrel, managing to close just above the $100 level by the end of the trading week. Silver failed to regain the $40 level and futures contracts sank lower by about $2 throughout the week, closing at around $36.28 an ounce. As expected, the U.S. dollar continued to depreciate and we are cautiously holding our ground in anticipation of an equity-market rebound in the coming days. Against this backdrop, we see several technicals-based opportunities among the ETF universe, including a very appealing commodity trade with attractive upside over the coming weeks, as well as two foreign sector funds that seem likely to climb higher as equity markets regain their footing:

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To most, cotton is a part of everyday life, a part of the textiles found in every wardrobe. But after prices surged in 2009, some investors have begun making cotton a part of their portfolio as well, and are turning to cotton ETFs as a way to gain exposure. While this soft commodity has the [...]

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Soft commodities were active on Thursday, with sugar futures surging to their highest level in more than three weeks and coffee futures jumping on worries of supply dips in coming months. Heavy rains in Brazil, the world’s top sugar producer, disrupted output and sent mills scrambling to renegotiate contracts with trading houses after production levels [...]

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