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gopguy63
01-13-2007, 10:49 AM
What kind of an analysis can anyone give me about this ETF? The fastmoney guys last night rated it a buy for a play on the "soft commodity sector"...
Im looking to get in, any thoughts..

Lou
01-13-2007, 01:45 PM
I think you should listen to Bolling. He's pretty smart and usually right on his calls.

MoMoney4Me
01-13-2007, 05:01 PM
About all I know of DBA, which represents futures contracts on the soft commodities of corn, wheat, soybeans, and sugar, is that it can be highly speculative and share prices very volitile. Unless you know the market you're putting your neck on the chopping block.

In the same segment of Fast Money a bullish opinion was stated for the RTH ( retailers index ). I can better understand the 20 companies that make up that index than I can the DBA and would be more inclined to take a position in that.

With gas prices down, the economy in a sweet spot of not-too-hot-not-too-slow growth and the stock market strong I think we'll see continued strength in the retail sector and intend to allocate additional assets to the sector in the coming week. RTH fits the bill well for diversification in that area.

Goldilocks rules !!! :D

Lou
01-13-2007, 08:22 PM
http://www.dbfunds.db.com/dba/index.aspx

Svenwulf
01-15-2007, 09:41 AM
I think you should listen to Bolling. He's pretty smart and usually right on his calls.

i like gold and i like bolling. please be more creative than gld. consider tax implications of any PM etf. two good metrics to judge miners are reserves and cost of production per ounce/ ton. i also like stazini's idea of higher beta in silver if you're a dollar bear. these are very basic ideas, but i think people new to the PM trade will easily become frustrated if they don't understand how to read the sector's manipulations.

gopguy63
01-16-2007, 06:21 PM
Thanx for all the info. Did Bolling put a BUY on DBA i know one of the guys on the show did?? I bought in at 27.60 Down to 26.00 as i speak. Wish id have stayed away at this point since im no novice on commodities. Oh well have-to wait it out and see what happens.