Still Time To Latch On To the Commodities Boom

Oil stocks, while a favorite of many analysts looking for commodity exposure, are not a favorite of mine. In my next column, I'll tell you why and where to go to get quality exposure to the monumental rise in oil prices.

None of the rationales I've discussed here look to be shifting yet. In fact, many of these trends look like they've really just begun. It's hard for me to believe that the lofty CRB index represents a 'bubble' f any kind and the bull run in commodities looks set to continue for quite a while.

Therefore, if you haven't yet gotten exposure into the commodity space yet, I'm recommending that you go out and get some. And, if you're already invested in the space, I'm convinced that you'll probably need to increase your exposure to at least 10% of your investable portfolio to be correctly allocated and take advantage of this rare bright spot in today's markets.

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At the time of publication, Dicker did not hold any positions in the securities mentioned, but positions can change at any time.

Dan Dicker has been a floor trader at the New York Mercantile Exchange with more than 20 years' experience. He is a licensed commodities trade adviser. Dan's recognized energy market expertise includes active trading in crude oil, natural gas, unleaded gasoline and heating oil futures contracts; fundamental analysis including supply and demand statistics (DOE, EIA), CFTC trade reportage, volume and open interest; technical analysis including trend analysis, stochastics, Bollinger Bands, Elliot Wave theory, bar and tick charting and Japanese candlesticks; and trading expertise in outright, intermarket and intramarket spreads and cracks. Dan also designed and supervised the introduction of the new Nymex PJM electricity futures contract, launched in April 2003, which cleared more than 600,000 contracts last year alone. Its launch has been the basis of Nymex's resurgence in the clearing of power market contracts over the last three years. Dan Dicker has appeared as an energy analyst since 2002 with all the major financial news networks. He has lent his expertise in hundreds of live radio and television broadcasts as an analyst of the oil markets on CNBC, Bloomberg US and UK and CNNfn. Dan is the author of many energy articles published in Nymex and other trade journals. Dan obtained a bachelor of arts degrees from the State University of New York at Stony Brook in 1982.