Commodity ETF's

I was been asked to discuss about the following ETF's going forward and most of you know its better to be in ETF rather than in a individual stock. Okay, lets look briefly these commodity ETF's as per request:

UYM is long basic materials fund. Got whacked off during Oct decline due to demand destruction and need to pull back around $15 area before we can even enter into this as we don't see any demand coming soon this year in this sector for sure. Getting back to 100's is out of cards anytime before 2011-2012 and I don't see 2005-2006 partying going to come soon.



DXO is oil related long double fund. This puppy can move way higher as oil prices sky rockets beyond $100 in coming months and years due to weak dollar but for now it had extended its rally and need to pull back around $3-$3.50 before going higher but add this fund on any pull backs.Previous Oil Post



BOS is Short Precious metal Fund. My personal view on this is you don't want to short at this moment as we are entering into a bull markets until 2015 so better be on side lines until your long precious metals.



DGL is gold fund. This fund will be higher as gold goes higher and we will see new highs on this. Add this on any pull backs and my initial target on this would be around $45 in coming months.



DBA is commodity agriculture Fund. This is very bullish to me due to dollar weakness. Banks sold most of thier commodity baskets around the globe to fix thier balance sheets due to loss orginated from housing related sector.We are definitely entering to multi decade commodity bull market and we might see new highs in 2010 on this. This got extended and to retrace little so add this @ around $26 for good entry point.



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Region's economy to shrink further

Central Florida's incredible shrinking economy will continue its vanishing act this month, according to the Sentinel's Central Florida Economic Index.

All five measures are expected to once again post year-over-year declines, another sign the recession, while easing in some respects, is still settled over Central Florida. The overall index, a rolling projection of local economic activity, is expected to fall 9.38 percent this month from June 2008.

The construction-industry index remains the big loser, with residential building permits projected to decline more than 56 percent from last year at this time. The index projects 682 permits will be issued, fewer than half of the total issued in June 2008.

Hotel-tax collections are projected to come in at $13.5million, a decline of 33.6 percent from last year. Tourist taxes have been declining for a year.Full Story

Bernanke Presses For Fiscal Restraint

Prolonged Deficits Threaten Economy, Fed Chief Warns

The nation needs to begin planning now to eventually bring taxes and spending in line, Federal Reserve Chairman Ben S. Bernanke said yesterday, arguing that large budget deficits, if sustained, could deepen the financial crisis and choke off the economy.

Bernanke's testimony to Congress reflected growing concern among economists and investors that the nation's long-term fiscal imbalances could stand in the way of economic recovery by driving up the interest rates that the government, businesses and consumers pay to borrow money. The rate the government pays has already risen in recent weeks. Full Story

It's the Economy, Stupid

Tomorrow will likely bring more bad news for President Barack Obama on the number one issue for voters -- the economy. The Labor Department's monthly job report will almost certainly show unemployment topping 9%, with a couple hundred thousand more jobs lost in May.

It will get worse before jobs get better. Congressional Budget Director Douglas W. Elmendorf recently predicted that unemployment will continue rising into the second half of next year and peak above 10%.

Mr. Obama has an ingenious approach to job losses: He describes them as job gains. For example, last week the president claimed that 150,000 jobs had been created or saved because of his stimulus package. He boasted, "And that's just the beginning." Full Story