17Feb10:08 amEST

A Rocky Start for Commodities

As I noted on Friday when I opted for a peaceful long weekend, I decided not to swing my long silver position after considering a long earlier in the day (I sold for a less than 2% loss). In reality, I had no sense that silver would gap down as hard as it did after I sold it. But it is a good reminder that the stock market is like a bus station--There is always another trade coming and trouble usually happens when you try to force trades in there. 

Off the open, silver and gold are getting pounded, while crude and natural gas are coming in a bit, too. 

To my eye, corn and wheat are performing the best of any commodities. I charted CORN over the weekend on Stocktwits. And looking at the updated daily chart, below, a move over $26.30 would be a step in the right direction for bulls. 

In addition, if UNG reverses up to green today I may consider another long UGAZ trade.

And watch that 50-day moving average on GDXJ to see if it holds as support into this morning swoon in the metals and miners. Until these types of wild gaps abate, I am still viewing all adventures into the precious complex as quick trading opportunities only. 

Six Secrets of Successful Be... Riding the Momentum du Jour

 
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