Worried About the Market – Hide in a Mine or a Field, but not a Minefield

• Posted by Greg Harmon
• on August 2nd, 2011

The broad market dropped over 2.5% today while Treasuries jumped over 2.5% and Gold went through the roof. Feeling like you wish you had taken your toys from the playground and went to cash last week? You have plenty of company. But there are places in the equity market that you can hide while it settles that still have some upside potential from broader macro economic conditions. Below are two metals and two agricultural plays that look good in this environment.

iPath Dow Jones-UBS Copper Subindex Total Return ETN, $JJC

The iPath Dow Jones-UBS Copper Subindex Total Return ETN, $JJC, has held in a bull flag since the beginning of July. The Copper ETN, often used as a barometer of the health of the market refuses to give up the flag. Using 57 as a stop, this can be a good place to store value and it should pop if the broad market reverses higher through the channel top at 59 to resistance at 60 and then 61.50. A fall below 57 sees support at 56 near the crossing Simple Moving Averages (SMA) and then lower at 55 and 53.

ETFS Physical Palladium Shares, $PALL

The ETFS Physical Palladium Shares, $PALL, or Palladium ETF, is building a bullish flag after a run higher and at short term resistance just under 84, near the top from February. Using the bottom of the flag near 81.20 as a stop, further market weakness should carry this higher as well. If it gets over 84 then it has a measured move to 90.

Teucrium Commodity Trust Corn Fund, $CORN

The Teucrium Commodity Trust Corn Fund, $CORN, moved higher Tuesday out of the bullish flag. It is now approaching the top from June just over 48 and it if can get through that then its Measured Move higher to 52. The RSI and MACD both support a move higher.

iPath Dow Jones-UBS Livestock Subindex Total Return ETN, $COW

The iPath Dow Jones-UBS Livestock Subindex Total Return ETN, $COW, is moving higher in a series of higher highs and higher lows. With a RSI and a MACD that support more upside, look for it to continue to resistance at the 30.85-31 area and through that 31.50 and 32.10 higher.

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