Commodities

Commodities are an important aspect of most American’s daily life. A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Traditional examples of commodities include grains, gold, beef, oil, and natural gas.

For investors, commodities can be an important way to diversify their portfolio beyond traditional securities. Because the prices of commodities tend to move in opposition to stocks, some investors also rely on commodities during periods of market volatility.

In the past, commodities trading required significant amounts of time, money, and expertise, and was primarily limited to professional traders. Today, there are more options for participating in the commodity markets.
With all of the newer ETFs today, you can participate in the movement of most tangible Commodities (Oil, Gold, Silver, Copper, Coffee, US Dollar, Wheat, Sugar. Corn, etc.)

Here at Above the Green Line we filter through the Universe of high volume Commodity Funds each week for the very Strongest based on Relative Strength. Relative Strength can indicate how Commodities have fared over the past year relative to the other funds. It is a percentile ranking of the price performance relative to other securities and relative to the broad U.S. market performance.

Charts for some of the strongest Commodity Funds we follow ($WTIC, SLX, UUP, UGA, GLD, DBC, DBA, URA, SLV, $CRB, $COPPER and $GOLD) are presented below. These are real time charts. Please refresh the page to update the chart.

At Commodity.com they have published a guide to trading commodities which can serve as a complementary resource for users. Their guide includes:

• How to interpret prices
• Definitions for common terms like contango and backwardation
• How to develop a trading strategy