Equity markets are lower for the first time in a while as the overbought conditions finally kicked in - and all those bulls who wanted a chance to get in - well now is a chance with prices better then the last few days.

SPX -16, NAZ -20 and DJIA -106.

Strongest sectors- biotech, internets, retail and banks while energy, metals, homies and ags lag.

NYSE- 1600 net losers;

NAZ- 1000 net losers;



VIX- higher by 4% at/near 31;

Gold and silver getting beat up as are the ags with the metals down 1.85% and the DBA off almost 4% and I have dipped in for some DBA. Also looking at some DBC as natty gas is also getting hammered.

One day trade in QLD which was a quick winner - and looking to reenter as I doubt the bulls are done and the NQ goes straight down.


Anonymous JJ said...

Hi David,

How do you feel about holding physical commodity ETFs (DBA, DBC, etc.) for the long term?

I know IAU/GLD track the price of gold rather well, however, USO does not track the price of crude well. I remember USO being launched with a price that was the same as the commodity. However, today, it fetches half the spot price of crude.

I think the discrepancy arises from the fact that IAU actually holds bullion while USO holds futures contracts. I think DBC, DBC, etc. follow the USO model, which means they are not good long term holdings.

Please comment. Thank you.

2:28 PM  
Blogger DAVID said...

My guess is that it tracks better than USO - and its 4 commodities - here is the best I could find for now-


8:02 PM  

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