Exercise #7


3.) Evaluate the chart of the Continuous Commodity Index (UV/Y) at Point 1. Assume you own a commodity related ETF. Which of the following strategies would be most appropriate?

Your answer was A. The chart has pulled back and positions can be added to.

A. That is incorrect. Since the trend is negative and the UV/Y chart is giving sell signals, most likely commodity related funds and ETFs are struggling. We want to keep the trend in our favor.

Go back to the question.