Best way to play a commodity rally without futures.

[Bomp]

What would be the optimal way to play a commodity rally? Mainly focused on oil, copper and certain soft commodities. Obviously individual stocks of the major producers is one way to go(most liquid? major players in Oil and copper?). Currencies? Perhaps AUD and BRL for metals and soft commodities maybe MXN somewhat with oil.

 

[fan27]

What would be the optimal way to play a commodity rally? Mainly focused on oil, copper and certain soft commodities. Obviously individual stocks of the major producers is one way to go(most liquid? major players in Oil and copper?). Currencies? Perhaps AUD and BRL for metals and soft commodities maybe MXN somewhat with oil.

Buy some CLR (Continental Resources) for an oil play. It has explosive moves and easily could see $30 in the next few months.

 

[Bomp]

Thanks. Took a look at it and compared it to OXY and they pretty much look very correlated. OXY has almost 10 times the volume and a fraction of the bid offer spread of CLR.

 

[ph1l]

You could try commodity ETFs.
https://etfdb.com/screener/#page=1&...,Copper,Softs&ytd_ff_start=NaN&ytd_ff_end=NaN

 

[Nine_Ender]

What would be the optimal way to play a commodity rally? Mainly focused on oil, copper and certain soft commodities. Obviously individual stocks of the major producers is one way to go(most liquid? major players in Oil and copper?). Currencies? Perhaps AUD and BRL for metals and soft commodities maybe MXN somewhat with oil.

Junior and mid cap companies in the gold, silver, or oil sectors. Copper the big players move well. Avoid the well known big caps unless it's a longer term play based on earnings releases or 1-2 year trends. Check recent chart for key technical levels and avoid stocks narrowly range bound in recent trading sessions.

 

[sef88]

Used dated CFDs - much cheaper in costs. At the same time, you can possibly extract roll/carry returns.

 

[El Trado]

What would be the optimal way to play a commodity rally? Mainly focused on oil, copper and certain soft commodities. Obviously individual stocks of the major producers is one way to go(most liquid? major players in Oil and copper?). Currencies? Perhaps AUD and BRL for metals and soft commodities maybe MXN somewhat with oil.

Oanda and I am sure a lot of other brokers has a lot of commodities including oil and copper. Why take the detour thru other instruments?

But if you look for currencies, I would think NOK is a lot better than MXN for oil. Chile is the biggest producer of copper afaik.

 

[Money Trust]

Used dated CFDs - much cheaper in costs. At the same time, you can possibly extract roll/carry returns.

Aren't CFDs illegal in America?

 

[sef88]

Aren't CFDs illegal in America?

Oh I live in Singapore. Unfamiliar with the rules in America. Then perhaps micro or emini futures are more suited then.

 

[Bomp]

Thanks for the suggestions. Agree an NOK, Chile(CLP), just not liquid and accessible on the retail side. I think Banco Santander Chile (subsidiary) has an ADR, that may work.