You have all heard the news.
Commodities rebounded from the biggest drop in almost two weeks after Goldman Sachs Group Inc. advised investors to return to raw materials….When Goldman Sachs analysts made their call yesterday, many commodities traders must have felt either relieved or angry. Relieved if they were long already, and angered if they were short. That is the long and short of it!
Why should anyone who was bearish feel angry? Perhaps it is because of what “naked capitalism” discusses in the post “Goldman Recants its $200 a barrel, ‘Super Spike’ call for oil”? But you would surely want to read ‘The Reformed Broker’ who noticed that Goldman made quite a contradictory call the same day!
While you are mulling about all this, perhaps a bit of advice from Peter Brandt would help. Peter has written a book titled “Diary of a Professional Commodity Trader”, and David Blair a.k.a The Crosshairs Trader has provided us with a quick excerpt…actually six major points. Enjoy!