Two Ways To Play: Commodity Comedown
Strengthen your portfolio in good times and bad.
Crude oil fell $4.92 to $115.12 as of 3:30 PM EST, falling to its lowest levels since early May. Oil has dropped approximately 27% from the record price of $147.27 on July 11.
Meanwhile, the dollar had its biggest jump in four years after European Central Bank President Jean-Claude Trichet said economic growth would be "particularly weak" through the third quarter.
As of midday, the CRB Index of 19 raw materials fell 2.2% to 390.71.
Professor Kevin Depew talked about this space in today's DepewTube: In a Material World.
From the Bull Pen: The drop in commodities aside, bulls know the equity markets were poised to continue this rally. The fourth higher low put in by the S&P 500 adds to the positive technical picture and bulls can play the Ultra S&P 500 (SSO) with sell-stops in the $58-$60 range.
From the Bear Cave: The Ultrashort oil and gas (DUG) remains in play. Bears can continue to ride this inverse ETF.
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