Thursday's Commodity ETF Sell-Off by the Numbers

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Includes: AGQ, DBC, GLD, JJC, SLV, USO, ZSL
by: John Spence

Many analysts have been warning of a violent correction in commodities ETFs after their frothy rally, and this week it finally arrived.

Commodities had been trading lower this week, but the real beating came on Thursday. Here is the grisly tab from today’s brutal sell-off in commodities:

  • iShares Silver Trust (NYSEArca: SLV) down nearly 12% on record trading volume of almost 300 million shares. Drops below its 50-day moving average.
  • A leveraged ETF for silver, ProShares Ultra Silver (NYSEArca: AGQ), down an astonishing 23.4%. Its bearish counterpart, ProShares UltraShort Silver (NYSEArca: ZSL), rallies by a similar percentage.
  • U.S. Oil Fund (NYSEArca: USO) drops 9.1% as a rallying dollar and rising inventories pressure the energy complex.
  • A copper exchange traded note, iPath Dow Jones-UBS Copper ETN (NYSEArca: JJC), plummets nearly 4%. Not a good sign for the global economy. JJC slices right through its 200-day moving average.
  • SPDR Gold Shares (NYSEArca: GLD) drops nearly 3%.
  • An ETF tracking a basket of commodities, PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC), falls nearly 7%.

iShares Silver Trust

click to enlarge

Full disclosure: Tom Lydon’s clients own SLV and GLD.