Overbought/Oversold Commodity ETFs

Hickey and Walters (Bespoke) submit: Bespoke readers seemed to like our recent Dividend ETFs report. As we mentioned in that post, we are in the process of developing a new ETF tool that will simplify the navigation process for ETF investors as well as add value with Bespoke's own ETF analysis.

Below we provide a second category of ETFs: Commodities. We have also included the price and where the ETF currently stands from a timing perspective. Red flags indicate the ETF is overbought, while green flags indicate that it is oversold. Be sure to check out the average daily volume of these ETFs as some are fairly illiquid.

click to enlarge

Comments

[Michael Bom...:]

Hey guys, interesting article. I've been very interested in DBA but have found its volatility a little too much for a large position. Just curious about your table there though, are the signals based on how much the ETFs have deviated from the movement of their underlying commodities or more on technical analysis?

2007 May 10 08:02 PM

[Mary Ellen ...:]

Thank you for this chart. Very helpful. I echo Michael Bommarito on the question of the basis of the classification as OB, OS and Netural. My question is whether there is label error. I am presuming that Red is OB, Green is OS and Yellow is Neutral. However, the legend shows two Yellows, one labeled OB and one labeled Netural.

2007 May 11 08:43 AM