oil
Recent blog posts
- Has Crude Oil Topped Out?
- What Is A Head & Shoulders Pattern?
- Free 25 Proven Commodity Option Strategies
- Where Are Cattle & Hogs Prices Headed?
- Have Sugar Prices Bottomed?
- When Do You Buy Put Options?
- When Should You Buy Call Options?
- Precious Metals Lower In Quiet Trade
- Soybeans Lower On Excellent Mid-West Weather
- What Is Chart Structure?
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Investing in the S&P 500 and commodities can be a wise idea to grow your portfolio over the course of time, however there can be tumultuous times that can have your portfolio decline dramatically as in the case of the financial collapse of 2008. Those times are over and the S&P is right near its old highs and the Nasdaq composite is at 11 year highs and the commodity markets have rallied tremendously in the last couple of years.
If you make a living farming in any sector such as grains, dairy, energy products, or any other type of commodity, in my opinion if the price fluctuates greatly than you should hedge to limit risk. These commodities listed above move greatly up and down throughout the year and not having any sort of hedge on your commodity is dangerous. A hedger wants to limit their risk on the downside in case prices plummet and the way to do that is by purchasing puts.
The crude oil market was down $1.50 a barrel today on the defensive because of the large overhang of supply in the market. Like I said yesterday I think crude had to go to 95 dollars a barrel before heading higher which it did this morning. Unleaded gasoline finished lower by 2 cents to close at 2.87 a gallon in light trading today. Heating oil was higher by 1 cent to close around 3.05 a gallon.

