Commodities Start To Rumble, Says Dr. Joe Duarte
Duarte added: Consumers have been getting a break lately, as commodity prices have been tame. But as oil seems to have bottomed out, other commodity prices seem to be joining it, giving DBC, a diversified commodity ETF a potential boost.
DBC is composed of crude oil (35%), heating oil (25%), aluminum (12.5%) and corn, wheat, and gold making up the rest. Thus, investors who own DBC are getting a fairly broad representation of the most liquid commodity futures contracts.
The ETF lost some 60% of its value after topping out in July 2008, finally bottoming out in February, and having tested the February bottom in early March.
As would be expected, the bottom in crude is an important piece of the puzzle for DBC, but wheat and corn have also made bottoms recently. Gold has been fairly steady in a trading range, and aluminum has been weak.
Duarte's conclusion: Here's the point. Crude seems to have made a bottom, as have corn and wheat. Those are three key commodities with both commercial and consumer angles. If the global economy continues to weaken, higher prices in three key commodities, more specifically, food and fuel, are not going to be helpful.
Make Sense of today's Nonsense. Get Doctor Joe Duarte's Market I.Q., at:
http://www.joe-duarte.com/free/order_choices.asp and subscribe to www.joe-duarte.com, for its daily energy review and stock picks.
A book for this market - The All NEW Market Timing For Dummies. at:
Duarte partners with the Investors Resource Center at Investrend Information (http://www.investrendinformation.com).
Duarte's IntelligentForecasts.com (http://www.intelligentforecasts.com) provides free news coverage and analysis, and his daily articles and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Duarte has combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.
He is the author of: Futures And Options For Dummies, Successful Energy Sector Investing, Successful Biotech Investing and co-author of After-Hours Trading Made Easy. In early 2001, in Successful Energy Sector Investing, he correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States. He has also appeared as a weekly guest on Market Mavens Radio and has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.
One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990. His articles and commentary have been featured on CBS Marketwatch, Barron's, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines. In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.
FinancialWire" ( http://www.FinancialWire.net ), an independent, proprietary news service of Investrend Communications, Inc., receives no compensation for its news or opinions. Further disclosure is at http://www.investrend.com/articles/secondlevel.asp?level=472 . To contact FinancialWire" write to inquiries@FinancialWire.net .
Free annual reports for companies mentioned in the news are accessible via http://investrend.ar.wilink.com/?level=279 .
Copyright(C)2009 by financialwire.net, Inc. All rights reserved.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
