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Online Share Trading

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Preparing for the short squeeze in commodity shares

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Hali
Super Contributor
I am looking at all the commodity shares and all and I mean all look heavily oversold.. I am punting on a short squeeze soon.. >10% move across the board..Once the investors realise the industrials and financials are overvalued, I am thinking there will be a sector rotation.. What would your stock picks be in the Commodities, I am long BIL atm..
8 REPLIES 8
SimonPB
Valued Contributor
industrials been over valued since about 2010
Hali
Super Contributor
You must agree with me that commodities will never go to zero in a straight line.. There will be bounces and the swings could be volatile to the upside and downside..
SimonPB
Valued Contributor
100% agreed, but personally I always only trade in the direction of the primary trend. Reduces risk and increases reward, with commodity stocks that primary trend is down ..
Hali
Super Contributor
That's also how I trade, but if you look at the graphs of AMS,BIL and AGL the technicals indicate a buy..yes its risky but to short at these levels would be more risky in my opinion.. They down between 20 - 30% in last two weeks..
Creature_of_the
Super Contributor
Good call .looks like its happening..
Hali
Super Contributor
Thanks. Does someone know the interest rate standard bank charges on a long CFD position?
Russ
Super Contributor
Vince888
Regular Contributor
Why would you want to go long in the interest rate hike cycle with commodities. Surely commodity companies are heavily geared and have high debt/equity.