Title: What The Greek Debt Crisis Means For These 3 Commodities…
1(No Transcript)
2Welcome to Commodity Trading Research Your
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3- Hi, My name is Justin and Im with Commodity
Trading Research, today were reviewing our
recently published article
4What The Greek Debt Crisis Means For These 3
Commodities
5- Three Commodity ETFs To Watch As The Greek Debt
Crisis Unfolds
6- Things are getting rather interesting in the
Greece debt crisis - After years of kicking the proverbial can down
the road, Greek politicians appear ready to let
their country fall into bankruptcy.
7- With last weekends meeting with Eurozone
creditors a complete failure, Greeces Prime
Minister Alexis Tsipras called an emergency
meeting yesterday to discuss the countrys
options. - From the sounds of it, they dont have many.
8- Greek Debt Crisis Pay Up, Or Get The Hell Out!
9- If Greece defaults on the their debt, theres a
very real chance theyll exit the Eurozone. In
such a scenario, its quite likely we see an ugly
global market downturn.
10- But the downturn may be especially nasty for
commodities. - Why?
11For starters, the US Dollar will surge on the
news. Investors will flee the Euro, parking cash
in the worlds reserve currency until things
settle down across the pond.
12- Since commodities generally trade inversely to
the Greenback, odds favor a rather sharp selloff
in a handful of important hard assets.
13- Here are three commodities, and an associated
commodity ETF, that will most likely see a sharp
reaction to a Greek default.
14- West Texas Intermediate (WTI) Crude- WTI is
stuck at the 60 a barrel mark as investors try
to decipher the most recent supply/demand data.
With the high-demand summer driving season
getting into full swing, Im currently biased
towards higher prices.
15- But if Greece defaults, we could see a rather
nasty selloff in WTI - Thats why Ill be keeping a close eye on the
ProShares UltraShort DJ-UBS Crude Oil SCO in
coming weeks. This 2X leverage inverse fund will
scream higher if the price of oil plummets
towards 50.
16- For more information on SCO, and other ways to
play the oil market through leveraged ETFs
17- Gold- The yellow metal hasnt been acting well
lately. The commodity is stuck in a tight range
just south of 1,180 an ounce. But if Greece
defaults, theres a very good chance of gold
plunging below the March 2015 lows at 1,150.
18Thats why the DB Gold Double Short DZZ should
be on your ETF watch list. However, a word of
caution- DZZ is thinly traded. As a result,
only experienced traders should consider
speculating in DZZ.
19- For other inverse gold ETF alternatives, click
here.
20- Silver- Golds little brother is trading at the
bottom of a multi-month range near 16 an ounce
right now. If the US Dollar surges on a Greek
default, its not out of the realm of possibility
to see silver plunge to new multi-year lows below
15.
21- To capitalize on this scenario, Ill be watching
the ProShares UltraShort Silver ZSL. If the
inverse 2X leveraged fund breaks above 110, we
could see a monstrous move to 120 or higher.
22- Heres more information on the best ways to
capitalize on silver price swings via commodity
ETFs. - Now listen closely
23- The debt situation in Greece is fluid. The
country can avoid default if theyre willing to
make some serious considerations with their
Eurozone creditors.
24- It goes without saying that any word on the
outcome is going to move the markets rapidly. - Here are a few important dates to keep in mind
25- Greece meets with the Eurogroup Finance Ministers
this Thursday. If progress isnt made at that
meeting, the European Union Leaders Summit on
June 25th may be the countrys last chance at
averting catastrophe.
26- Now, always remember
- Controlling your downside risk is your first
priority as a trader. Use a stop loss order or
other risk control measure if you plan on trading
the commodity ETFs above. They move quickly!
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