Friday, May 1, 2009

Gold vrs Ags (6 week update)

March 20 (then)
DBA 25.01
GLD 94.35

May 1 (now)
DBA 26.11
GLD 87.04

I'm not posting updates to show how "correct" i have been. To those who read my blog routinely, I'm more prone and have been to post when I'm wrong after the fact, or when see something "different or changing" than from what I had originally.

Just wanted to express, there are "OTHER" trade ideas that have good profit potential besides FAZ,FAS,FAZ,FAS, etc.

When 2 underlying assets (ie gold and grains) create such a huge deviation in price, yet they are both propelled by the same momentum force (ie inflation) presents trading opportunities.

The same goes for when there are massive divergences in OIL the commodity vrs OIL service stocks, or GOLD vrs Gold mining stocks, etc etc. They are meant to be watched, and to fade the correction, when massive ones present.

1 comment:

  1. DBA rallied on soybeans. Soybeans (July) closed at 10.91/bushel! Strong import demand from China and ENSO dry conditions in Argentina (drought) means soybeans are good to go.

    There are some concerns about wheat though. I will post about those later.