Velocityshares Daily 2X Vix Medium Term (TVIZ)

[gldtimer]

Sure.

Commodities are the oldest form of money...with cattle being the oldest of the old.

Commodities do well in a negative real return environment produced by the interest rate being less than the rate of inflation.

So anytime anticipated real return falls (market is projecting the spread between interest minus inflation will be lower) commodities do well. This is when the Fed falls 'behind the curve'.

The reverse is also true anything the anticipated real return rises (market is projecting the spread between interest rate minus inflation will be higher) commodities suffer.

In isolation then commodities favor lower interest rates and higher inflation rates, but need to be studied on a relative real return basis.

Oil is a unique animal driven by cartel utterances. I've spent untold hours trying to figure a timing mech. for the slippery stuff and have come up empty handed. I'd suggest focusing on a basket of commodities such as GCC or RJA.

Hope this helps.