I’ve been saying for a bit now that we’re in a commodity super cycle. Mostly I’ve been saying that in the context of oil, but actually, all commodities are hot right now because of the ongoing Russia-Ukraine conflict.
Corn and wheat, especially, are through the roof and represent some great profit opportunities. But to make the biggest gains here, you need to play it smart.
Even in the most stable of markets, agricultural commodities tend to whipsaw more than other categories of equities. For all kinds of reasons, they don’t always go in one direction and rarely do for long. They are often overbought and are prone to quick drops. Add in the extra volatility from the super cycle, and they can seem completely chaotic.
That’s why I recommend using these kinds of stocks as trading vehicles rather than long-term holds. In the short term, you can make the volatility work for you by playing both sides of the potential momentum, hedging your purchases with trailing stops and put options.
In today’s video, I show you exactly how to protect your profits no matter what happens, using some of my favorite ag-commodities ETFs.
Click the video below for those tickers, how to play them, and two bonus trades in the mining and transportation sectors:
Given everything that's happening in the stock market, it's more important than ever for investors to find unique places to put their money. And the most lucrative investment I know of at the moment isn't even a stock at all...
It's something I call "pre-IPO rights" - the right to claim shares in a company yet to go public. Often these rights can be had for a buck or less - the ones I'm thinking of, belonging to a crypto business, cost just $0.70 or so. But I've seen projections that hint these could rise to $7 over the next year.
In other words, an investor who put $100 in now could reap as much as $1,000 by the time it's all said and done. Here's how it could work...
Follow Money Morning on Facebook and Twitter.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.