Best way to play a commodity rally without futures.

Discussion in 'Commodity Futures' started by Bomp, Jan 5, 2021.

  1. Bomp

    Bomp

    What would be the optimal way to play a commodity rally? Mainly focused on oil, copper and certain soft commodities. Obviously individual stocks of the major producers is one way to go(most liquid? major players in Oil and copper?). Currencies? Perhaps AUD and BRL for metals and soft commodities maybe MXN somewhat with oil.
     
  2. fan27

    fan27

    Buy some CLR (Continental Resources) for an oil play. It has explosive moves and easily could see $30 in the next few months.
     
  3. Bomp

    Bomp

    Thanks. Took a look at it and compared it to OXY and they pretty much look very correlated. OXY has almost 10 times the volume and a fraction of the bid offer spread of CLR.
     
  4. ph1l

    ph1l

  5. Nine_Ender

    Nine_Ender

    Junior and mid cap companies in the gold, silver, or oil sectors. Copper the big players move well. Avoid the well known big caps unless it's a longer term play based on earnings releases or 1-2 year trends. Check recent chart for key technical levels and avoid stocks narrowly range bound in recent trading sessions.
     
    fan27 likes this.
  6. sef88

    sef88

    Used dated CFDs - much cheaper in costs. At the same time, you can possibly extract roll/carry returns.
     
  7. El Trado

    El Trado

    Oanda and I am sure a lot of other brokers has a lot of commodities including oil and copper. Why take the detour thru other instruments?

    But if you look for currencies, I would think NOK is a lot better than MXN for oil. Chile is the biggest producer of copper afaik.
     
  8. Aren't CFDs illegal in America?
     
    Amatrue likes this.
  9. sef88

    sef88

    Oh I live in Singapore. Unfamiliar with the rules in America. Then perhaps micro or emini futures are more suited then.
     
  10. Bomp

    Bomp

    Thanks for the suggestions. Agree an NOK, Chile(CLP), just not liquid and accessible on the retail side. I think Banco Santander Chile (subsidiary) has an ADR, that may work.
     
    #10     Jan 6, 2021