Editor's Note:

My short-term bias for stocks is still down but the oversold bounce may not be over yet. The sell-off has been so steep in the commodities sector that we may have an opportunity to catch more of the bounce.


NEW BULLISH Plays

Double-Long Oil ETN - DXO - close: 3.60 change: +0.10 stop: 3.39

Why We Like It:
The sell-off in oil has been extremely sharp with a 20% plunge in less than two weeks. Now crude oil is trying to find some support near $60.00, which as previous resistance has a decent chance of actually holding as support. I'm suggesting readers buy the DXO double-long ETN. The recent low is $3.46. We'll use a tight stop at $3.39. Our first target is $3.90. Our second target is $4.20. We want to exit the majority of our position at the first target. FYI: Keep an eye on the U.S. dollar. A weak dollar should boost oil prices.

Annotated chart:

Entry on      July 09 at $ 3.60 
Change since picked:     + 0.00   			
Earnings Date          00/00/00 
Average Daily Volume:      12.4 million 
Listed on  July 09, 2009    


iShares GSCI Commodity ETF - GSG - close: 27.09 change: +0.29 stop: 26.45

Why We Like It:
This is another 'buy the oversold bounce after a massive sell-off' type of play. The GSG tracks 24 different commodities and commodities have gotten crushed in the last several days. This is a little redundant with the DXO play since more than 65% of the GSG is invested in energy commodities. Yet players might like the risk-reward in the GSG more than the DXO.

I'm suggesting bullish positions now with a tight stop loss at $26.49. If you really wanted to play it safe you could try a stop at $26.59 since Wednesday's low was $26.60. Our first target to take profits is $28.95. Our second target is $29.75. We want to exit the majority of our position at the first target.

Annotated chart:

Entry on      July 09 at $27.09 
Change since picked:     + 0.00   			
Earnings Date          00/00/00 
Average Daily Volume:       622 thousand
Listed on  July 09, 2009