Commodity ETF Alert November 2009 Portfolio Update

| November 24, 2009 | 0 Comments

November 24, 2009

Thanksgiving’s Here!

Right now you should be thinking more about Thanksgiving than the markets.  I know I am.  I love the Thanksgiving holiday.  We always have a big gathering.

Last year my family, extended family, and friends numbered 38 people for the big feast.

Tables are set-up everywhere (even the back yard), the kids are running around amped-up on sugar.  The beautiful aroma of turkey and pumpkin pie permeates the house.  My aunts and cousins are scurrying around carrying giant bowls of grandma’s mashed potatoes and green bean casserole.

Dad carves the turkey, mom makes the gravy.  Grandpa fixes the drinks… Bloody Marys all around to start!

My mouth is watering just thinking about it… I love Thanksgiving.

I hope you spend some quality time with your loved ones this week.  Remember, this event is all about giving thanks for everything we have.

We’re fortunate to have a number of very successful recommendations in the service… And I have a few more to mention today!  That’s something we can all give thanks for!

***SPECIAL NOTE***  In the last few days, we had five of our open positions hit new highs.  Why?  Simply because the CPI numbers from the Labor Department came out higher than expected for the month of October…

Can anyone say INFLATION!

I’ve been beating the inflation drum for some time and now it’s starting to take hold.  The inflation numbers we’re seeing are small in the grand scheme of things… but the fear of bigger inflation down the road is already driving commodity prices significantly higher!

Hold on tight, this ride’s going to get exciting!

Now, let’s take a look at our open positions…

Position Updates

. . . . iPath Dow Jones-UBS Aluminum ETN (JJU) – Buy up to $29.25

Our recent trade in Aluminum is going exceptionally well.  Aluminum hit a new high on the CPI index news and fears of inflation.  We’re almost above the buy-up-to price.  If you haven’t already established a position, consider buying below $29.25.  If you already own this, hold tight for now…

. . . . iPath Dow Jones-UBS Platinum ETN (PGM) – HOLD

Platinum’s now trading well above the buy-up-to price.  Everyone should be sitting on a nice profit of at least 23%… not a bad return in under two months.  Once again, this commodity is hitting a new high on the CPI index news and fears of inflation.  Hold tight for bigger gains ahead.

. . . . iShares Silver Trust (SLV) – HOLD

Silver has jumped right through our buy-up-to price and has held onto the gains.  We’re sitting on a beautiful 15% gain.  Silver’s hitting a new high on the CPI index news and fears of inflation.  Hold tight for bigger gains ahead.

. . . . iPath DJ AIG Natural Gas TR Sub-Index ETN (GAZ) – Buy up to $15.50

Due to huge storage levels, Natural Gas has been struggling to move higher.  It’s one of the few commodities that didn’t get a big pop from the CPI numbers.  I still think a cold winter will draw down supplies and we’ll see GAZ move higher in the next few months.

We’re still under our buy-up-to price… Consider buying GAZ below $15.50.

. . . . iShares COMEX Gold Trust (IAU) – HOLD

Gold continues moving higher… We told you fears of inflation would push this commodity through the roof!  The commodity is trading above $1,148 an oz. and our ETF crossed above the $113 level – a new high!  Our gains are over 21%.  I see bigger profits ahead.

. . . . iPath Dow Jones–AIG Copper ETN (JJC) – HOLD

News of the higher CPI numbers pushed Copper prices up as well.  Again, our trade is at a new high and everyone should be seeing gains of about 49%.  It’s a great trade… but hold tight, I still think we run higher from here!

Action To Take

  • Move Platinum (PGM) to a hold.


Category: Commodity Trading

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.