12:26PM EST

Over the year, I’m become more and more interested in commodities and the cycle in which it moves.  With this dramatic Fed move to save our financial system, the view on the dollar has changed dramatically.  Perhaps the rate in which it slows will slow if that’s a good thing or not, it’s up to you.  But with the drop in the dollar comes the rise in the commodities complex.  Unfortunately during the rally and raids last week, I neglected to position myself in gas which I’m very disappointed in myself but I barely had enough time to think let alone trade.  But fortunately for me, the trade is far from over.  It is actually getting started.  A whole lot of commodities funds and positions were blown out because of the precipitous drop and the redemptions that caused much of the sales but it seems that it is now over so the demand and supply for these positions are beginning to consolidate to a new cycle.  It may be a little bit late to get into gold at this time but it’s definitely a much safer play now.  I wouldn’t mind but the risk reward is minimized now.  Where do I see growth?  Well natural gas again.

Looking at the chart, you can see that it has been totally killed and it’s not even funny.  It’s hit a one year support for the ETF and if you look at the last leg down when it hit $33 or so, there was huge capitulation.  And now that the commodities trend is ramping up again, there is once again opportunity on the upside with limited downside.  I’m actually going into CHK as an alternative to the trade as the returns are higher.

I would also look at steel stocks and gold stocks now.  Also the XLE would be safe and one beaten down sector would be shipping.  Shipping probably has the hugest upside but shipping volumes growth is somewhat in doubt.

Disclosure: Short: PLD, Long: CHK