| Dow Jones Commodity Index Fund – This | | | | commodity price, well this fund trades identical to |
| index tracks the entire commodity market as a | | | | the index. What does this mean? It means we |
| whole. Over the past two years we have seen | | | | can trade the DJP commodity index fund for |
| commodities drop in value substantially. The good | | | | short term and long term positions because there |
| news is that we could be seeing prices rise going | | | | isn’t any price decay over time. |
| forward from here. | | | | |
| 2009 has been a fantastic year for trading | | | | Performance Chart of Commodity Index & |
| commodities with the market bottoming and | | | | Fund |
| starting to move higher. This commodity index | | | | This chart goes back almost 2 years. As you can |
| clearly shows a Cup & Handle pattern and is | | | | see the % change for the index and the fund are |
| looking ready to breakout in the coming weeks. | | | | virtually identical. We do not need to worry about |
| The C & H pattern is the best chart | | | | Contango with this fund. |
| formation we could get. Breakouts from these | | | | |
| patterns generally provide a rally which can last | | | | Major Commodities Breaking Out or Bottoming |
| months at a time. | | | | Gold, Crude Oil and Natural Gas are highly traded |
| Let's take a look at what kind of opportunity | | | | commodities and will play a large role in the |
| looks to be just around the corner. | | | | direction of the commodity index. |
| Dow Jones Commodity Index Chart – Weekly | | | | Gold is breaking out to a new high - Bullish |
| Commodities appear to have bottomed and are | | | | |
| getting squeezed into the apex of the bullish | | | | Crude Oil is consolidating in a bullish wedge - Bullish |
| wedge. This index could easily rally to the 180 | | | | |
| level which is about 35-40% Gain. | | | | Natural Gas is trying to bottom and should move |
| | | | higher into the winter - Bullish |
| DJP iPath Commodity Index Fund – Weekly | | | | |
| After reviewing several different commodity | | | | Dow Jones Commodity Index Trading Conclusion: |
| index funds I like the characteristics for DJP the | | | | Money has been moving into the commodity |
| most. There is enough volume traded which | | | | sector since March of this year. As a technical |
| makes for a smooth trading fund on an intraday | | | | trader this opportunity jumps out at me. I wanted |
| basis when looking at the 10 minute chart. Several | | | | to share it with fellow traders because this could |
| other funds were choppy and thinly traded. | | | | be once of the easiest trades of the year if the |
| This is Exciting – Everyone knows how most | | | | index breaks out in the coming weeks. |
| commodity funds vary from the underlying | | | | |