In Hard Times What’s even more Valuable than Gold & Silver?
Every time a new client opens a Forex account with me, the new accounts manager asks if we should give them a commodity account also. Lately I say “yes”. I say yes because I’m confident that following the next Greenback rally — currently in place right now — that we are going to get a serious opportunity to get long certain commodities.
As my great uncle — God rest his soul – used to say: “even if you don’t have the best roof over your head, you’ve got to eat”. Granted he was a bit of a throw back, as in down right primitive, favoring the comfort of lead, over silver and gold “cuz without lead you ain’t gonna’ be able to hang on to yer fancy a$$ jewelry”. He had a point I guess, and it was his ingenuity that got his extended family through the great depression “with full bellies and good shoes on everyone’s feet”.
I don’t know what the future holds, but I do know that optimists generally sleep better than pessimists. And while my great Uncle was a character – and you never knew what he was going to show you when he opened the trunk of his sedan, or what he had stashed behind the seat of his truck — I don’t think hard times this time around will mean stocking up on ammunition, or lead, as he simply put it. Food on the other hand, as in taking long-term position trades, or investments in corn, wheat and soybeans may be a pretty good idea, in my humble opinion, the next time we see buy signals on the higher time frame charts.
I’ve posted a monthly chart of corn below where we can see the technical tenet of resistance becoming support taking place.
Along with currencies and keeping an eye on stock indices, it looks like I’m going to have to add the grains to the watch list while I’m doing the morning call for clients. I’m still an opptimist, I’m just preparing things ahead of time…
Jay Norris
jnorris@brewerinvestmentgroup.com
www.trading-u.com
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