Tuesday, April 8, 2014

ETF Trading Newsletter - CORN ALERT

We have been watching the commodities index rally for a few weeks now with natural gas, coffee, sugar, gold, silver and several others jump in price. We have been watching the corn ETF "CORN" which is a basket of several commodities to get a feel for the commodities market as a whole.

While most of the commodities have posted some solid gains, corn has yet to pop in price. Corn looks to be forming a stage 1 basing pattern and the volume/money flowing into this fund suggest new money is moving into corn because it looks as though it will be the last to pop and rally in price.

This is similar to how we entered the silver trade a few weeks back. Everything else in the precious metals sector popped and silver lagged giving us a high probability setup.

Both the short and long term the charts of corn look bullish. As usual I will lock in some gains if we get a pop in the commodity, then let the balance ride with a break even stop. If corn is entering a new bull market phase (Stage 2) I want to hold some long term. There is potential for a 19%-30% rise in value.

Corn Trade Information:
Buy corn ETF "CORN", Stop $29.90, Downside Risk 6%, Portfolio Size 6%

ETF Trading Newsletter - Corn

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Chris Vermeulen

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