Commodities Alert for 12/28/2018

COMMODITIES RECENT RELATIVE PERFORMANCE UPDATE

We are seeing cash inflows outpace market inflows which means that the market is looking for a safe haven. Beating out commodities means that this could be more protectionary-related rather than economically-related from an inflationary perspective. Cash is not normally a long term hold so be sure to watch out for reversion in the short to medium term. Right now a Fed front run in the metals space particularly gold is a better hedge than cash. Instead of buying the market outright or playing a cash reversion, due to increase premiums traders could sell puts on the market here and capture the theta decay while they wait for confirmations.

COMMODITIES TRENDS

Group

ETF

Name

Trend

RSI with Trend

Metals GLD SPDR Gold Trust UP 69
Metals JJC DJ-UBS Copper TR Sub-Idx ETN Ipath UP 54
Metals PPLT Platinum ETF DOWN 46
Metals PALL Palladium ETF UP 58
Energy USO US Oil DOWN 37
Energy UNG US Natural Gas Fund DOWN 41
Energy KOL Coal ETF Market Vectors DOWN 32
Agriculture CORN Teucrium Corn Fund ETF DOWN 43
Agriculture WEAT Teucrium Wheat DOWN 44
Agriculture JO DJ-UBS Coffee TR Sub-Idx ETN Ipath UP 42 X
Agriculture SGG DJ-UBS Sugar TR Sub-Idx ETN Ipath UP 39 X
Agriculture NIB DJ-UBS Cocoa TR Sub-Idx ETN Ipath UP 63
Agriculture COW DJ-UBS Livestock TR Sub-Idx ETN Ipath UP 46 X
Agriculture BAL DJ-UBS Cotton TR Sub-Idx ETN Ipath DOWN 20
Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network