The slump in the data is confirmed by the price action. The USCI, which is a commodity sector Index fund, was down about 3% in recent trading action This fund invests in precious metals, industrial metals, energy, and agricultural products such as livestock, softs, and grains…a very diverse portfolio.
The gold section of the commodity space has been getting a lot of hate from the news. “The main driver behind gold’s weakness this year has been the focus on global growth and that’s meant rotation out of defensive assets like gold,” says UBS analyst Joni Teves.
The GLD’s RSI recently hit 22.5. A reading below 30 is normally considered ‘oversold.’ Moreover, GLD’s current IV is above its 20 year annual, perhaps it is prudent to take to other side of the recent commodity slump through a nice short vol bullish-to- neutral trade.
