What The Greek Debt Crisis Means For These 3 Commodities… PowerPoint PPT Presentation

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Title: What The Greek Debt Crisis Means For These 3 Commodities…


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Welcome to Commodity Trading Research Your
premier site for fundamental and technical
analysis for profitable Commodity Trading. For
more info on Commodity Trading Research visit our
website www.CommodityTradingResearch.com
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  • Hi, My name is Justin and Im with Commodity
    Trading Research, today were reviewing our
    recently published article

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What The Greek Debt Crisis Means For These 3
Commodities
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  • Three Commodity ETFs To Watch As The Greek Debt
    Crisis Unfolds

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  • 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.

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  • 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.

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  • Greek Debt Crisis Pay Up, Or Get The Hell Out!

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  • 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.

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  • But the downturn may be especially nasty for
    commodities.
  • Why?

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For 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.
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  • Since commodities generally trade inversely to
    the Greenback, odds favor a rather sharp selloff
    in a handful of important hard assets.

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  • Here are three commodities, and an associated
    commodity ETF, that will most likely see a sharp
    reaction to a Greek default.

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  • 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.

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  • 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.

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  • For more information on SCO, and other ways to
    play the oil market through leveraged ETFs

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  • 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.

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Thats 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.
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  • For other inverse gold ETF alternatives, click
    here.

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  • 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.

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  • 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.

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  • Heres more information on the best ways to
    capitalize on silver price swings via commodity
    ETFs.
  • Now listen closely

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  • The debt situation in Greece is fluid. The
    country can avoid default if theyre willing to
    make some serious considerations with their
    Eurozone creditors.

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  • 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

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  • 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.

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  • 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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