DBB Breaks Out From Resistance
by Jim Woods 10/23/09
Free Trading Guides
Editor's note: OptionsZone editor Jim Woods will be filling in for Sam Collins today.
PowerShares DB Base Metals Fund (DBB) -- This exchange-traded fund (ETF) is designed to track the Deutsche Bank Liquid Commodity Index -- Optimum Yield Industrial Metals Excess Return (DBBMIX). DBBMIX is intended to reflect the base metals sector, specifically aluminum, zinc and copper.
With commodities and international equities leading the list of outperforming ETFs, investors may want to add DBB to their portfolio in order to participate in the further appreciation of these commodities, and as a hedge against further declines in the U.S. dollar.
On Sept. 21, with DDB at $18.21, the Trade of the Day said, "A break from the resistance at about $19 has a trading target of $22."
The breakout occurred on Oct. 19, and we'll stick with that target.
Go after money doublers with every trade you make! Download your FREE copy of The Options Trader's Guide to Technical Analysis today.
More By This Expert
Chris Johnson
Why Does My Call Decline When the Stock Gains?
Understanding the factors that affect option pricing is crucial to your trading success.
Use a Strangle to Profit From Starbucks' Earnings
Starbucks has been a big mover -- up and down -- after earnings, and the company is schedule to report today after the close A strangle creates a win-win for traders.
The earnings projections for Starwood Hotels (HOT) are ridiculously low. Get in before they blow expectations out of the water.
Bullish call activity in YHOO is hitting highs for the year ahead of earnings -- but when they announce it will be a wake, not a party.
XOM may hit earnings estimates, but a big, positive reaction is not likely to materialize, and the newbies will fall over themselves to dump the stock.
