THE AGS
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;
SPX - 53 GREEN;
NDX- 55 GREEN;
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.
posted by DAVID at
12:31 PM
2 Comments:
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.
My guess is that it tracks better than USO - and its 4 commodities - here is the best I could find for now-
http://www.invescopowershares.com/products/overview.aspx?ticker=DBA
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