Trading Strategy – Invesco DB Commodity Index Tracking Fund

Oil prices rose on Friday as U.S. sanctions against Iran threatened to remove a substantial volume of crude from world markets at a time of rising global demand.  During the final week of the second quarter of 2018 NYMEX crude oil rallied and moved to the highest price since November 2014.  U.S. West Texas Intermediate (WTI) crude ended Friday’s session up 70 cents, or 1 percent, at $74.15.  As such, the Invesco DB Commodity Index Tracking Fund (DBC) rose 1.14 percent to 17.68, up 6.4 percent YTD.  Now the question is whether the rally has more legs?  Below is an update look at a trade in DBC.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red. 

Chart 1.1 – Invesco DB Commodity Index Tracking Fund (weekly)

Our “U.S. Market Trading Map” painted DBC bars in green (buy) – see area ‘A’ in the chart.  Over the past few weeks, DBC has been trending lower in a short-term corrective mode as the 2017 recovery rally ran out of steam near the 2015 highs.  The late May selloff tested and respected support at the 2017 rising trend line…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.


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