Commodity action for profit now (currencies too)

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Jim Cramer likes to say that “there’s always a bull market somewhere”.  While he may be a bit loud for my tastes, in that, he is correct.  In a difficult market it takes work to turn a profit and right now one of the clearest opportunities is in the commodity corner.  I have some commodity ETFs set up in a watchlist in TC2000, which has become a real tool for me, so much more than a charting tool.  I have set an indicator which clearly shows me which symbols are above their 50-day SMA, and how far above their 200-day SMA they are.  It’s a quick and easy visual screen:

I set most of these mock positions up on May 22nd, so the gains for PALL (palladium) and SGG (sugar) at +9.84% and +8.62% respectively are nothing to sneeze at for eleven trading days!  I’ll take those numbers any day.  PALL has the more spectacular chart, has cleared its 200, 50 and 20-day SMAs and broke resistance today.  There may be another 5% to be made here:

Perverse as I am in these matters, I actually like SGG’s chart a little better. Nice steady march upwards and with a greater upside potential in my opinion.  The commodity traders almanac tells us that historically sugar starts a 32-day bull run on or around June 15th so maybe we started early this year.  Also remember that like corn, ethanol has tended to push sugar prices up.  Still below the 200-day SMA so it looks as if SGG has room to run. Closed at $78.14 today, SGG was at $40.60 a year ago.  I’m telling you that so you’re mindful of setting your exit and stops.

In closing, let me add that you should not ignore currency ETFs right now either.  I put real money, equal dollar weight into FXE, FXS and FXF two trading days ago and am up 0.39% so far.  Big deal you might say, but I am on line for my 1% a month that compounded will work for me. (Don’t forget I’m also earning interest on two of these on top of capital gains.  Not much, but it all helps.)