Showing posts with label Ag Stocks. Show all posts
Showing posts with label Ag Stocks. Show all posts
Friday, 10 July 2009
Emerging Market Spotlight - China - Bloomberg
Strong Demand still in railroads, coal, water, oil, and agriculture commodities.
Emerging Market Spotlight - China - Bloomberg
Strong Demand still in railroads, coal, water, oil, and agriculture commodities.
Friday, 27 February 2009
Trade DBA or DBC and recieve a K-1 in the mail?
DB Commodity Services LLC Letter
K-1 Form
During the 2008 trading year I traded the DBA ETF (PowerShares DB Agriculture Exchange Traded Fund), and as a result I received a K-1 form in the mail from the DB Commodity Services LLC. I thought this was just some more stock junk mail, but it turns out, it was real and applies to my taxes.
Doug Fabian posted a nice article detailing the matter last spring called "Avoid The Tax Trap of Commodity ETFs"
Here's the good information from the article-
The Internal Revenue Service (IRS) taxes futures investments differently than equity investments. In contrast to equities that remain unsold, holdings in futures contracts and T-bills are marked-to-market at the end of each year. As a result, there is a tax consequence on commodity ETF investments even if they have not been sold yet. This leads to the cost basis of these investments being adjusted at the end of each year, Rich explained.
One way to avoid these tax issues is to use IRA or other tax-deferred accounts for commodity ETFs, rather than putting them into taxable accounts, Rich said.
Deutsche Bank had more than 380,000 different investors who owned its commodity ETFs in 2007, and each of them received a K-1 to complete their tax returns, Rich said. To assist those investors, Deutsche Bank provides a toll-free phone number, 1-800-578-8755, for them to call with any questions. The investment firm also tries to send out all of the K-1 forms it needs to distribute no later than the second half of February to help its investors ready their tax returns in time.
For investors who want to diversify into commodities, beware of the tax trap with funds that use futures contracts. If you want to steer clear of the year-end tax uncertainty, those who seek commodity exposure may want to consider using tax-deferred accounts for such ETFs or just buying ETNs.
Fortunately for me, my trade in DBA was a day trade, so I had no interest income and my Net short term capital gain(loss) was also reported as ZERO on the form.
K-1 Form
During the 2008 trading year I traded the DBA ETF (PowerShares DB Agriculture Exchange Traded Fund), and as a result I received a K-1 form in the mail from the DB Commodity Services LLC. I thought this was just some more stock junk mail, but it turns out, it was real and applies to my taxes.
Doug Fabian posted a nice article detailing the matter last spring called "Avoid The Tax Trap of Commodity ETFs"
Here's the good information from the article-
The Internal Revenue Service (IRS) taxes futures investments differently than equity investments. In contrast to equities that remain unsold, holdings in futures contracts and T-bills are marked-to-market at the end of each year. As a result, there is a tax consequence on commodity ETF investments even if they have not been sold yet. This leads to the cost basis of these investments being adjusted at the end of each year, Rich explained.
One way to avoid these tax issues is to use IRA or other tax-deferred accounts for commodity ETFs, rather than putting them into taxable accounts, Rich said.
Deutsche Bank had more than 380,000 different investors who owned its commodity ETFs in 2007, and each of them received a K-1 to complete their tax returns, Rich said. To assist those investors, Deutsche Bank provides a toll-free phone number, 1-800-578-8755, for them to call with any questions. The investment firm also tries to send out all of the K-1 forms it needs to distribute no later than the second half of February to help its investors ready their tax returns in time.
For investors who want to diversify into commodities, beware of the tax trap with funds that use futures contracts. If you want to steer clear of the year-end tax uncertainty, those who seek commodity exposure may want to consider using tax-deferred accounts for such ETFs or just buying ETNs.
Fortunately for me, my trade in DBA was a day trade, so I had no interest income and my Net short term capital gain(loss) was also reported as ZERO on the form.
Trade DBA or DBC and recieve a K-1 in the mail?
DB Commodity Services LLC Letter
K-1 Form
During the 2008 trading year I traded the DBA ETF (PowerShares DB Agriculture Exchange Traded Fund), and as a result I received a K-1 form in the mail from the DB Commodity Services LLC. I thought this was just some more stock junk mail, but it turns out, it was real and applies to my taxes.
Doug Fabian posted a nice article detailing the matter last spring called "Avoid The Tax Trap of Commodity ETFs"
Here's the good information from the article-
The Internal Revenue Service (IRS) taxes futures investments differently than equity investments. In contrast to equities that remain unsold, holdings in futures contracts and T-bills are marked-to-market at the end of each year. As a result, there is a tax consequence on commodity ETF investments even if they have not been sold yet. This leads to the cost basis of these investments being adjusted at the end of each year, Rich explained.
One way to avoid these tax issues is to use IRA or other tax-deferred accounts for commodity ETFs, rather than putting them into taxable accounts, Rich said.
Deutsche Bank had more than 380,000 different investors who owned its commodity ETFs in 2007, and each of them received a K-1 to complete their tax returns, Rich said. To assist those investors, Deutsche Bank provides a toll-free phone number, 1-800-578-8755, for them to call with any questions. The investment firm also tries to send out all of the K-1 forms it needs to distribute no later than the second half of February to help its investors ready their tax returns in time.
For investors who want to diversify into commodities, beware of the tax trap with funds that use futures contracts. If you want to steer clear of the year-end tax uncertainty, those who seek commodity exposure may want to consider using tax-deferred accounts for such ETFs or just buying ETNs.
Fortunately for me, my trade in DBA was a day trade, so I had no interest income and my Net short term capital gain(loss) was also reported as ZERO on the form.
K-1 Form
During the 2008 trading year I traded the DBA ETF (PowerShares DB Agriculture Exchange Traded Fund), and as a result I received a K-1 form in the mail from the DB Commodity Services LLC. I thought this was just some more stock junk mail, but it turns out, it was real and applies to my taxes.
Doug Fabian posted a nice article detailing the matter last spring called "Avoid The Tax Trap of Commodity ETFs"
Here's the good information from the article-
The Internal Revenue Service (IRS) taxes futures investments differently than equity investments. In contrast to equities that remain unsold, holdings in futures contracts and T-bills are marked-to-market at the end of each year. As a result, there is a tax consequence on commodity ETF investments even if they have not been sold yet. This leads to the cost basis of these investments being adjusted at the end of each year, Rich explained.
One way to avoid these tax issues is to use IRA or other tax-deferred accounts for commodity ETFs, rather than putting them into taxable accounts, Rich said.
Deutsche Bank had more than 380,000 different investors who owned its commodity ETFs in 2007, and each of them received a K-1 to complete their tax returns, Rich said. To assist those investors, Deutsche Bank provides a toll-free phone number, 1-800-578-8755, for them to call with any questions. The investment firm also tries to send out all of the K-1 forms it needs to distribute no later than the second half of February to help its investors ready their tax returns in time.
For investors who want to diversify into commodities, beware of the tax trap with funds that use futures contracts. If you want to steer clear of the year-end tax uncertainty, those who seek commodity exposure may want to consider using tax-deferred accounts for such ETFs or just buying ETNs.
Fortunately for me, my trade in DBA was a day trade, so I had no interest income and my Net short term capital gain(loss) was also reported as ZERO on the form.
Tuesday, 29 April 2008
V stands for Visa, not Vendetta
The stock of the day was V, or as I like to call,
THE V TRAIN!,,,,,,,,,, ALL ABOARD!
V and MA were hot stocks to trade today. I sold V way too soon. Ouch!
Meanwhile all the Ag stocks continued there sell off. I should have held that PUT option on POT from a couple weeks back.
Saw some support in Crude Oil so I got a LONG scalp on XOM.
Signals on YM worked good today-
I sold FSLR WAY TOO SOON, should have scaled out of my long better.
This stock gapped down big in the morning and was on my scanner, however volume lacked so I only stayed around for a small scalp.
Good signals on ER2, should have entered with 2 contracts and scaled out based on my signals.
Got impatient with this trade and Oil was beginning to bounce, so I exited early.
Saw support in Crude Oil so I shorted Dug, this was a good trade.
I wasn't brave enough to trade Crude Oil even though my signals looked good.
My signals on AAPL always seem to work, I just need to be more patient.
My Trades
P/L
THE V TRAIN!,,,,,,,,,, ALL ABOARD!
V and MA were hot stocks to trade today. I sold V way too soon. Ouch!
Meanwhile all the Ag stocks continued there sell off. I should have held that PUT option on POT from a couple weeks back.
Saw some support in Crude Oil so I got a LONG scalp on XOM.
Signals on YM worked good today-
I sold FSLR WAY TOO SOON, should have scaled out of my long better.
This stock gapped down big in the morning and was on my scanner, however volume lacked so I only stayed around for a small scalp.
Good signals on ER2, should have entered with 2 contracts and scaled out based on my signals.
Got impatient with this trade and Oil was beginning to bounce, so I exited early.
Saw support in Crude Oil so I shorted Dug, this was a good trade.
I wasn't brave enough to trade Crude Oil even though my signals looked good.
My signals on AAPL always seem to work, I just need to be more patient.
My Trades
P/L
Monday, 28 April 2008
Where are food Prices headed?
Got Rice?
With all the media coverage surrunding the price of agricultural foods, you may be interested in a fairly new ETF that you can use to trade the Ags.
DBA is an ETF that you may be interested in if you want to get in on the Agriculture craze. Here are DBA's top holdings.
Does DBA have a head and shoulders pattern?
With all the media coverage surrunding the price of agricultural foods, you may be interested in a fairly new ETF that you can use to trade the Ags.
DBA is an ETF that you may be interested in if you want to get in on the Agriculture craze. Here are DBA's top holdings.
Does DBA have a head and shoulders pattern?
Wednesday, 16 April 2008
Apr 16, Gap higher and morning Bull run
I traded the first 2 hours and made a trade in the afternoon. You'll notice I put on option position on POT. I bought 1 PUT strike 195 for the month of June, costing $1,745. My target is for POT to go back down to 180-185 in the next few weeks as I feel the stock is overbought, and some of the Ag futures look like they could be setup to rollover in the next few weeks if my theory on a head and shoulders formation is correct. I'm gonna give this PUT some time to play out, but hope to be out of my position by mid May if not sooner.
Sold My ER2 longs WAY too SOON!
Very Bullish NYSE A/D off the open.
Bullish NYSE TICK readings
Oat futures- potential head and shoulders-
Corn Futures at all time high today-
POT at all time high today, outside of upper bollinger band-
Alltime high on MOS-
All time high on MON too.
Sold My ER2 longs WAY too SOON!
Very Bullish NYSE A/D off the open.
Bullish NYSE TICK readings
Oat futures- potential head and shoulders-
Corn Futures at all time high today-
POT at all time high today, outside of upper bollinger band-
Alltime high on MOS-
All time high on MON too.