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 B. The chart has given a sell signal so current commodity related positions should be evaluate for stop loss points.

B. Correct! Perhaps the weightings in your commodity fund or ETF show it still holding up but the trend chart here suggests at least an evaluation of whatever commodity related vehicles you own is in order.

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