“…Over the long run, it should prove to be beneficial for the European Union that its budget deficits are being addressed in a realistic manner. The U.S. economy could also benefit from a similar approach. In the meantime, it might not be entirely smooth sailing. Even OPEC has warned that it has its doubts about the economic recovery and world demand for oil could dampen in 2010,” Billy Fisher Reports From Stock Traders Daily.
“Fortunately for traders who are long crude, the price of oil has hung in there around $80 per barrel. The United States Oil Fund (NYSE: USO) and other commodity plays such as the SPDR Gold Shares ETF (NYSE: GLD) continue to be driven up the charts by a falling dollar. GLD is sitting at a new 52-week high and USO is in striking distance. The PowerShares DB U.S. Dollar Index Bullish Fund (NYSE: UUP), an ETF designed to run in the direction of the dollar, has predictably fallen off of a cliff. UUP is down 16.3% since its March high,” Fisher Reports.
“The price movements of these ETFs are a clear illustration of the trading opportunities that will continue to exist for traders whether or not deficits are reigned in and the dollar recovers. It is understandable that the European Commission had grown cautious on a global economic recovery and provides all the more reason for traders to ensure that they have adequate risk controls in place,” Fisher Reports.
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The investment (GLD) seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.
The investment (USO) seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil.
The investment (UUP) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Long US Dollar Futures index. The index is comprised solely of long futures contracts. The futures contract is designed to replicate the performance of being long the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
The investment (UDN) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Short US Dollar Futures index. The index is comprised solely of short futures contracts. The futures contract is designed to replicate the performance of being short the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.