“After spending many years in Wall Street, and after making and losing millions of dollars, I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight. It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and lots of early bears in bear markets. I have known many men who were right at exactly the right time, and began buying or selling when prices were at the very level which should show the greatest profit. And their experience invariably matched mine: that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a market operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of ignorance.”

Jesse Livemore

This excerpt was forwarded to me by a prospective client and I feel it is relevant in the current environment. Investors possessing the ability to see beyond the daily price fluctuations and approach commodities with a more intermediate longer-term basis could be rewarded by acquiring what we view to be at undervalued levels. Do not try to pick a bottom but rather start scaling into longs and look to catch a piece of the move that we anticipate into 2009. What commodities fit this bill? Silver, sugar, soybeans, lean hogs, natural gas, and finally the Japanese yen just to name a few.

For specific strategies contact us via e-mail http://www.mbwealth.com or telephone at (888) 920-9997 / 954-929-9997. For the most part investors reading this analysis want to be more hands on, however we suggest taking a look at our managed futures section and consider diversifying further via CTA’s with proven track records: http://www.mbwealth.com/cta/risk.html