When You Trade Commodities, Forget About Stocks By Daniel Dicker About this article: This is the second of a two-part series of articles trying to explain why commodities don't act like stocks and can't be understood the same way. The word "speculation" has been applied to the dynamics of oil and general commodity pricing, and when it is, the words "manipulation" and "bubble" follow them shortly after. Let me explain why these words don't apply, and we'll have a better idea of what levels oil and other commodities can reach. First, we need to understand that commodity pricing is no longer being arrived at by the traditional users of commodity markets. In my first article, I described the nature of price discovery and talked about how legitimate buyers and sellers find each other using exchange contracts to arrive at fundamentally correct prices for corn, wheat, oil and other commodities. In the last few years however, speculation, particularly indexed speculation, has... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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