BEGINNING OF COMMODITY CORRECTION?

HBM

Sold my HBM today on this morning's sell-off. I am very nervous of this tremendous rally in the base metal stocks and I am determined not to hold the bag. If a correction ever occurs, it will be severe. I can always add on in the future.

HGRD

I added some HGRD today. It continues to show strength in last few sessions and I believe the risk/reward is favorable. $4.0 level provides solid support and I believe it will soon test its resistance at 4.75 level. I still believe $5.0 is a near term target and very much achievable. Nonetheless, I must be careful on this one that if it breaches $4.o, I have to dump them all.

The sell off of the commodity provides a gleam of scenario of a real severe commodity correction, where large amount of fund will come out of commodity trade and rotate into, in my judgment, laggers, i.e. healthcare, and large caps, as it occurred today. Commodity sold off, large caps moved up. I believe commodities, including crude oil will correct. It is only matter of WHEN.