Commodity Gap Coming Up
In recent weeks, commodities DBC have plunged. Thanks to yet another violent conflict in the world, commodities (and oil in particular) have exploded higher. My belief is that this move is done or close to done, and we must watch the price gap as a point of important resistance.
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I am taking advantage of this with a “starter” position in precious metals miners GDX. I will augment this position later so long as we stay beneath the price gap.
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I’ve also bought puts on XOP.
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