Exercise #7


4.) Evaluate the chart of the Continuous Commodity Index (UV/Y) at Point 2. Which of the following strategies would be most appropriate?

Your answer was B. UV/Y has already bounced from its lows so now would be a good time to take profits in ETFs based in commodities.

That is incorrect. While the UV/Y chart has in fact bounced, the trend recently changing to positive suggests that commodities in general are on I-95 North and thus we would want more of a long focus here rather than taking profits.

Go back to the question.