|
The "Three C's" Have Been Reliable Trades
Friday, September 03, 2010
by Paul Thornton of Investor Boot Camp Online
|
|
During the recent correction in many investment markets, three commodities have stood out; coffee, cotton and corn. We call them the "Three C's". Thanks to the proliferation in exchange traded funds (E.T.F.'s), investors can trade these commodity markets in any type of account including registered accounts. The symbols for the Three C's are; - Coffee (JO).
- Cotton (BAL).
- Corn (CORN).
Viewers of my guest appearance on BNN's Market Call Tonight, June 25th, would have seen my top pick as coffee (JO). In fact, it was technically my only pick despite the format of the show that requires 3 top picks. Since the other two were stocks, and market conditions were unfavourable, they were indicated as possible buys at lower prices when conditions improved. The timing wasn't right for most stocks. The Three C's all displayed characteristics of up trends that are reliable. They were also showing substantially better relative strength since most markets have been going lower over the last four months including oil. Coffee (JO), in particular, undertook a break out on June 11th which was followed up with two more sessions of big gains. The tight six day consolidation that followed was a tip off that more upside was coming. 
Trading alternative markets, to stocks, with E.T.F.'s can be a very effective remedy for stock traders who struggle with performance. Trading out of stocks and into JO, BAL or CORN instils the principle of "trading up". It also reduces exposure to areas of relative and increasing weakness. "Trade Up" and Profit!
Recent articles from this author
- Reading the condition of the stock market - Monday, June 20, 2011
- Pump Up The Profit - Wednesday, May 11, 2011
- Break Outs Are Key Indicator - Monday, May 09, 2011
- Silver Hammered - Monday, May 02, 2011
- Uranium Stocks Still Weak - Thursday, April 28, 2011
About the author
Paul Thornton
Investor Boot Camp Online
Trading and money management experience: 24 years Paul Thornton is the Director and Chief Research Strategist with Investor Boot Camp Online. Paul is an expert in market timing and trade execution strategies with a specialty in the stock market. He is frequently on national television and other media for his market insights and investment strategies. He is the author of Boot Camp Banter with commentary on markets as well as economic and business insights. He is well known and respected as a leader in investor education. Investor Boot Camp, Influences in the Stock Market, Understanding Investor Behaviours and Advanced Investor Workshop are very popular seminars. Paul’s daily analysis and blog insights can be read at http://www.investorbootcamponline.com/. Investor Boot Camp Online is a premier independent online investment information service. Research and strategies cover North American equities, bonds, E.T.F.’s, commodities, income trusts and currency markets. The Investor Tool Kit is one of the largest investment resources available with information for both the novice and sophisticated investor. Mindset management and Tips on Investing in Financings and Junior Resource Stocks are popular series of strategies and insights. Paul created the "Trade Risk" indicator which is a measure of the reliability of transacting in the stock market. His passion is to find the next great trade, as well as convince investors to sell at the beginning of corrections and keep them out until it’s over.
|
