Whilst we are only 2 months into the year the trend in Exchange Traded Funds (ETFs) so far in 2014 has a commodities theme. The big winner by far has been Coffee (JO) which is currently up 60% as the table shows. Coffee can be trading using a Financial Spread Bet, options or just buying the ETF. Whilst 2014 has seen a great comeback for Coffee it has been a terrible market the last few years.
The other area coming back are Gold mining stocks, again whilst the S&P500 and Dow Jones was hitting new highs in 2013 Mining stocks had no such fortune. So far mining stocks which are correlated to Gold prices are looking better.
One sector which did great in 2012,2013 and so far 2014 is the Biotechnology sector with the IBB and XBI seeing great returns.
As a trader it’s important to track sector changes as it’s a way to see where money is flowing to and from. With Financial Spread Betting its possible to from markets moving up and down, you can also be long (bet on sector to go up) and other to go down, I cover this in Making Money From Financial Spread Trading 2014 edition. You can find out more here. www.winonmarkets.net