Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Turn to Hard-Asset ETFs for Now


Energy took a dip, but that doesn't mean that hard assets are out of favor. On the contrary, there are a number of sectors worth a look now.


Last week, we saw a bit of a pullback in the equity markets, as well as a pullback in some commodity segments. It seems as though traders finally took a break from the QE-induced buying that's fueled gains for the past couple of months.

The decline in stocks wasn't significant in percentage terms, but the post-Fed lull did reveal that there are still sellers out there ready to take profits. That selling was particularly strong in the oil space last week. The swift downturn in the sector pushed our position in the iPath S&P GSCI Crude Oil Total Return Index (NYSEARCA:OIL) below our stop-loss price of $23 on September 19, and as such your OIL shares should have been sold that day.

Fortunately, our stop-loss prevented us from experiencing any losses, as oil prices fell almost 7% last week. Why did this happen? Well, some are speculating that it was a hedge fund moving to liquidate big positions. It could also have been caused by the Saudis trying to talk down the price of Brent Crude to their $100 per barrel target.

Whatever the reason(s), OIL was pushed down below our stop-loss, so you should make sure you exit this position if you haven't done so already.

It was the opposite story last week for our positions in gold and silver, as both positions continued their winning ways. We now have unrealized gains in Market Vectors Junior Gold Miners (NYSEARCA:GDXJ) and Global X Silver Miners ETF (NYSEARCA:SIL). I want you to continue holding both here, as I expect more upside to come in the metals space going forward.

I also want you to continue holding your newest position, the ELEMENTS Rogers Intl Commodity Agri ETN (NYSEARCA:RJA). This fund is pegged to the Rogers International Commodity Index Agriculture Total Return index. This index includes a basket of agricultural commodities such as corn, wheat, cotton, soybeans, coffee, cattle, sugar, cocoa, lumber, etc. The fund is basically a play on the entire agriculture sector, a sector that's up over 8% year to date, with a big surge higher since June.

Also on my radar here is an additional agricultural commodity-oriented fund with a focus on the biggest and best agribusiness companies around, the Market Vectors Agribusiness ETF (NYSEARCA:MOO). This fund has been on the march higher since June, and since has broken through technical resistance at the 50- and 200-day moving averages.

< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos