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The Greek debt crisis is reaching the boiling point. Here are three commodity ETFs to watch for a trade as events progress.
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What The Greek Debt Crisis Means For These 3 Commodities…
1.
2. Welcome to Commodity Trading Research
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3. Hi, My name is Justin and I‘m with
Commodity Trading Research, today were
reviewing our recently published article…
4. What The Greek Debt Crisis Means For
These 3 Commodities…
6. Things are getting rather interesting in the
Greece debt crisis…
After years of kicking the proverbial can
down the road, Greek politicians appear
ready to let their country fall into
bankruptcy.
7. With last weekend’s meeting with
Eurozone creditors a complete failure,
Greece’s Prime Minister Alexis Tsipras
called an emergency meeting yesterday to
discuss the country’s options.
From the sounds of it, they don’t have
many.
9. If Greece defaults on the their debt,
there’s a very real chance they’ll exit the
Eurozone. In such a scenario, it’s quite
likely we see an ugly global market
downturn.
11. For starters, the US Dollar will surge on
the news. Investors will flee the Euro,
parking cash in the world’s reserve
currency until things settle down across
the pond.
12. Since commodities generally trade
inversely to the Greenback, odds favor a
rather sharp selloff in a handful of
important hard assets.
13. Here are three commodities, and an
associated commodity ETF, that will most
likely see a sharp reaction to a Greek
default.
14. West Texas Intermediate (WTI) Crude-
WTI is stuck at the $60 a barrel mark as
investors try to decipher the most recent
supply/demand data. With the high-
demand summer driving season getting
into full swing, I’m currently biased
towards higher prices.
15. But if Greece defaults, we could see a
rather nasty selloff in WTI…
That’s why I’ll be keeping a close eye on
the ProShares UltraShort DJ-UBS Crude
Oil $SCO in coming weeks. This 2X
leverage inverse fund will scream higher if
the price of oil plummets towards $50.
16. For more information on $SCO, and other
ways to play the oil market through
leveraged ETFs
17. Gold- The yellow metal hasn’t been
acting well lately. The commodity is stuck
in a tight range just south of $1,180 an
ounce. But if Greece defaults, there’s a
very good chance of gold plunging below
the March 2015 lows at $1,150.
18. That’s why the DB Gold Double Short
$DZZ should be on your ETF watch list.
However, a word of caution- $DZZ is thinly
traded. As a result, only experienced
traders should consider speculating in
$DZZ.
20. Silver- Gold’s little brother is trading at
the bottom of a multi-month range near
$16 an ounce right now. If the US Dollar
surges on a Greek default, it’s not out of
the realm of possibility to see silver
plunge to new multi-year lows below $15.
21. To capitalize on this scenario, I’ll be
watching the ProShares UltraShort Silver
$ZSL. If the inverse 2X leveraged fund
breaks above $110, we could see a
monstrous move to $120 or higher.
22. Here’s more information on the best ways
to capitalize on silver price swings via
commodity ETFs.
Now listen closely…
23. The debt situation in Greece is fluid. The
country can avoid default if they’re willing
to make some serious considerations with
their Eurozone creditors.
24. It goes without saying that any word on
the outcome is going to move the markets
rapidly.
Here are a few important dates to keep in
mind…
25. Greece meets with the Eurogroup Finance
Ministers this Thursday. If progress isn’t
made at that meeting, the European Union
Leaders Summit on June 25th may be the
country’s last chance at averting
catastrophe.
26. Now, always remember…
Controlling your downside risk is your
first priority as a trader. Use a stop loss
order or other risk control measure if you
plan on trading the commodity ETFs
above. They move quickly!