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.

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salerno.mark.a@gmail.com

Paper bought 929 GNK Jan 2014 1 Puts for $.14 when stock was trading $2.66
Paper bought 800 SANM April 11 Puts for $.50 (2.7 times usual volume) when stock was trading $10.76
Paper bought 2000 EWC Sep 25 Puts for $.55 (5.0 times usual volume) when stock was trading $27.44
Paper bought 700 FSL April 14 Puts for $.80 when stock was trading $13.55
Paper bought 2000 EQR July 52.5 Puts for (2.5 times usual volume) when stock was trading $57.97

Paper bought 2661 EWA May 27 Calls for $.35 (3.2 times usual volume) when stock was trading $26.18
Paper bought 1000 PEG Sep 40 Calls for $.10 (3.3 times usual volume) when stock was trading $34.52
Paper bought 16,371 SU May 32 Calls for $.11 (4.1 times usual volume) when stock was trading $28.45
Paper bought 9200 PWE June 10 Calls for $.625 (10.8 times usual volume) when stock was trading $9.97
Paper bought 7350 DWJ May 47 Calls for $.65 (5.3 times usual volume) when stock was trading $44.14

Paper bought 8800 CX Jan 2014 7 Puts for $.28 when stock was trading $12.17
Paper bought 8700 LO May 37.5-32.5 Put Spread for $.36 (10.2 times usual volume) when stock was trading $40.30
Paper bought 9200 PWE June 10 Calls for $.625 (10.8 times usual volume) when stock was trading $9.97
Paper sold 2000 HOLX April 22 Puts for $.575 (8.8 times usual volume) when stock was trading $21.61
Paper bought 2661 EWA May 27 Calls for $.35 (3.2 times usual volume) when stock was trading $26.18