Week 13 Commodities Trending and Performance

I track Bitcoin and US Dollar within my commodities tracking list. I have been long Gold and Silver. Other commodities are starting to show up nicely as well now.

Trending Heat Map

Mostly trending bullish except for the US Dollar UUP and US Natural Gas UNG. The general commodity indexes DBC and GSG may just be starting to take off and these could be good trades to catch some upside.

Performance

The best pair trade this year would have been long BITO and short UNG. I am long Bitcoin but did not short UNG thinking it has to bounce back at some point. Clearly precious metals have done well, and looking at their trending, should continue to do well. I am long Gold, Gold Miners and Silver. So, that has been a good ride so far.

Correlation to S&P 500

There is low correlation of the commodities to the S&P 500. Notice that the US Dollar is inversely correlated to all the commodities.

My Positioning

I am long the precious metals and will add to the position. I may add DBC or GSG longs to play the overall commodities market to the upside.