T & K Futures and Options Says Use Sell Offs in Commodity Prices to Get Long.
Commodities have been on a tear recently as the second round of quantitative easing will most likely cause inflation sooner or later. Investors have been flocking to the dollar denominated commodity markets to hedge against currency and inflation risk. This commodity bull market may last for many years and price declines can be used as an opportunity to enter the long term commodity bull market.
Port St. Lucie, FL (PRWEB) January 19, 2011
Commodities have been on a tear recently as the second round of quantitative easing will most likely cause inflation sooner or later. Investors have been flocking to the dollar denominated commodity markets to hedge against currency and inflation risk. This commodity bull market may last for many years and price declines can be used as an opportunity to enter the long term commodity bull market.
Many commodities have made historic highs as the U. S. dollar continues to depreciate versus other major currencies. The recent rise in commodity futures prices has been fast and volatile and is due for a significant pull back. Massive profit taking from investors who have been long the futures in these markets has already begun and is bringing commodity prices back to more fair values. Visit http://www. tkfutures. com/basics. htm to learn more.
Cotton futures prices have doubled recently and are beginning to correct. Coffee, cocoa and sugar futures prices hit record highs recently and are beginning to correct. Gold and silver are selling off from record highs and may correct even more. Grain futures prices may also run out of momentum to the upside and the current sell off may continue for a few more weeks. Any prolonged decrease and consolidation in futures prices can be used by investors to buy into the inflationary bull market which may be coming soon for many commodities. Visit http://www. tkfutures. com/education. htm to learn more about futures and options trading.
The author of this article is a 17 year veteran of the futures and options markets and the president of T & K Futures and Options, Inc. Futures, options and foreign exchange products carry significant risk of loss and only risk capital should be used. Past performance is not indicative of future results.
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