Eric Bolling's Latest Trades & Thoughts ~ market folly

Wednesday, January 7, 2009

Eric Bolling's Latest Trades & Thoughts

Over on, notable trader Eric Bolling has posted up his latest piece. He's bullish on commodities and writes,

"And then, wow, it hit me like an ice cold shower. We are headed for a period of serious inflation with all the stimulus (free money) we are pumping into our economy. The dollar will be dramatically devalued and the reflation of the U.S. economy will happen, in a big way! Watch oil, gold and agricultural commodities soar in the coming years. With cheap and free dollars pumped into the system, the value, or buying power of those dollars, has to drop. The things we buy with dollars will increase in price just to keep up with the devaluing currency that is traded for it. And toss in a recovery and rebound in demand, you have the makings of a serious price recovery."


In energy related stocks and ETFs, I own U.S. Oil Fund (USO), El Paso (EP), and Quantum Fuels (QTWW). In metals, I own iShares Silver Trust (SLV) and SPDR Gold Shares (GLD). And finally, I bought PowerShares DB Agriculture (DBA) as the agricultural commodities have fallen with the rest of the dollar-based commodities. Much of the timing of this trade relies on the length of the current recession. It is possible that this trade may take months to open up. If the global economy struggles, so will this trade, so either have a longer-term horizon or trade smaller. I am in this for the long haul. At lower oil prices, I like the trade even more.


I am more convinced than ever that if you have a 12- to 18-month time horizon, there are amazing opportunities out there in commodities."

Regarding crude oil, we definitely agree with him and have been trading around it with the gyrations, while maintaining a core position all along. Longer-term, we see this as an excellent area to accumulate oil. The supply picture is and will continue to dwindle going forward. In terms of agriculture, we've also been getting constructively bullish, but still think it is a little early to touch this one. However, legendary investors and ex-hedge fund managers of the notable Quantum Fund, Jim Rogers and George Soros have both proclaimed their bullishness on agriculture. Rogers thinks that commodities will be in a bull market for years to come and have unimpaired fundamentals. Soros is equally as bullish and has also been accumulating a lot of Potash (POT).

In addition to, Eric Bolling posts over on Twitter. On Monday night (1/5) and again Wednesday morning (1/7), Bolling noted that he,

"Trimmed (United States Oil Fund USO position) by 1/3....another 1/3 a bit higher and last 1/3 hold for the run up. will buy all sales back on a (Crude Oil) $45 pullback...under $45 I like it. I will scale down from $45 to $35 "

And, he also re-affirmed his play on platinum, writing

"I talked about this trade on Happy Hour last night. Long $PL short $GC long platinum short gold spread trade. I put it on yest(erday)."

You can follow Eric's twitter here and our twitter updates here. Make sure to check out the entirety of Eric's piece on Lastly, if you've missed it, you can check out some of Eric's other recent commentary here.

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