What The Greek Debt Crisis Means For These 3 Commodities…

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Transcript of What The Greek Debt Crisis Means For These 3 Commodities…

With last weekend’s meeting with Eurozone creditors a complete failure, Greece’s Prime Minister Alexis Tsipras

called an emergency meeting yesterday to discuss the country’s options.

From the sounds of it, they don’t have many.

West Texas Intermediate (WTI) Crude- WTI is stuck at the $60 a barrel mark as

investors try to decipher the most recent supply/demand data. With the high-

demand summer driving season getting into full swing, I’m currently biased

towards higher prices.

But if Greece defaults, we could see a rather nasty selloff in WTI…

That’s why I’ll be keeping a close eye on the ProShares UltraShort DJ-UBS Crude

Oil $SCO in coming weeks. This 2X leverage inverse fund will scream higher if

the price of oil plummets towards $50.

Gold- The yellow metal hasn’t been acting well lately. The commodity is stuck

in a tight range just south of $1,180 an ounce. But if Greece defaults, there’s a

very good chance of gold plunging below the March 2015 lows at $1,150.

That’s why the DB Gold Double Short $DZZ should be on your ETF watch list.

However, a word of caution- $DZZ is thinly traded. As a result, only experienced

traders should consider speculating in $DZZ.

Silver- Gold’s little brother is trading at the bottom of a multi-month range near $16 an ounce right now. If the US Dollar surges on a Greek default, it’s not out of

the realm of possibility to see silver plunge to new multi-year lows below $15.

Greece meets with the Eurogroup Finance Ministers this Thursday. If progress isn’t

made at that meeting, the European Union Leaders Summit on June 25th may be the

country’s last chance at averting catastrophe.

Now, always remember…

Controlling your downside risk is your first priority as a trader. Use a stop loss

order or other risk control measure if you plan on trading the commodity ETFs

above. They move quickly!