DXO

Sigh, my DXO is dead. Deutsche Bank is going to redeem it. When I first bought it, I fantasized of 400% gain. Now, my fantasy is gone. Time to look for another ETF/ETN.

Commodities

If USD goes down, commodity price will go up. If demands pick up, commodities will go up some more. There are many ETF or ETN in US for you to invest in commodities.

You can read more about the performance of commodities in the following links:

1. 2009 Commodity Fund Performance - Part I
2. 2009 Commodity Fund Performance - Part II
3. 2009 Commodity Fund Performance - Part III

Oil Shock

Natural Gas Monthly Chart

Crude Oil Monthly Chart

A McKinsey report says that an oil shock is inevitable. How can you profit from this if it happens?

One way is to buy crude oil ETF/ETN or to invest in companies in the industry. Another is to buy natural gas because it is another energy source.

You can buy natural gas ETF through UNG. Look at the charts for crude oil and natural gas. You can see that natural gas price continues to stay low while crude oil has rallied almost 70% from its low. For those that like bottom fishing, I think that UNG is a good investment. The price should turn up when the emerging markets can grow their economy without relying on the Western countries consumption.

DXO

Crude Oil Weekly Chart

Looks like crude oil is bulding a base at around the 50.00 level. I am anticipating a rally when it can break USD55.00.

DXO: This is the first time I'm not playing options. I just can't find any strong trend (up or down) that allows me to play options. So, I have decided to buy DXO instead. The price is options-like and I am comfortable with my position. DXO has been flatlined sinced Nov 2008. Resistance: 3.20/4.00/5.00.