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This week we are seeing a global exhale. By that I mean traders are realizing that the sky is not falling yet and for now the FOMC is going to try and save the day. Can they really pull this off? We doubt it will work as history shows that it is not likely at…
Well it looks as if central bankers got the message that traders were sending them last week. They have stepped up and begun to change the perception of the future of the Dollar. The test now will be if they can perpetuate this change in perception or not. We see this as a “global exhale”. …
Well since we did not learn from our past as I mentioned last week, we are now about to repeat it. By that I mean it looks like we are going to see a global correction, even deeper than we have already seen. The fact that the FOMC is becoming the largest mortgage holder in…
For months now traders have been talking about the falling Dollar. Much has been made in the media about the Dollar being the world’s reserve currency. Well it looks as if that is all coming to an end. Global investors have been throwing Dollars overboard for some time and we may now see them turn…
Last week we saw a lot of news about the Dollar hitting new lows and commodities hitting new highs. All of this in the face of a Fed. that refuses to even acknowledge the existence of inflation. Well trust me, inflation has been around much longer than even this country and will continue to be…
Comments: The Dollar continues to get hammered as we edge closer to the next FOMC announcement. We do expect them to cut by at least .50 and .75 or even 1.00 is not out of the question. The .50 cut is already priced into the dollar but more than that and we will likely see…
General Comments: Commodities continue to grab headlines, not only in financial news but now also in main stream media. This is a clear sign that commodities as a whole are at or very near a short term top. We are still using these rallies to exit the few long positions we still have on. We…
Comments: Commodities are still strong this week. We continue to sound the alarm about the commodities correction to come. Again we are not commodity bears at all, just no longer bulls in the near term. We are using these spikes to higher prices both last week and this week to exit long trades in commodities. …
Comments: This week we have a lot of data coming out. Here in the US we have PPI, then later in the week we have GDP coming out of England. We expect to see another week of mixed movement with little directional bias. Overall the Dollar is still trying to find and hold a bottom…
Comments: Commodities continue to be strong but the bull is showing signs of exhaustion in many areas. After exploding to the upside, grains as a whole have been unable to maintain those high prices. Gold too has been unable to push through recent highs. We are in no way saying that the bull in commodities…
Comments:
Last week played out much like we expected. The RBA did raise rates while the BOE cut and the ECB did nothing. This week we do not have a lot of new data coming out so look for more range bound action this week. We continue to see the Dollar struggling in the near term but ultimately still holding support well above the double bottom lows near 75.
Comments:
This week, we have the FOMC meeting to contend with but on the commodities front we feel that there are other even more important things to mention. The traditional measure of the how the Commodities markets are doing as a whole has been the CRB index. This index has undergone a number of changes in recent years but the bottom line is no matter how you measure it, commodities as a whole are at all time highs. And I mean all time not just life of contract highs, but real all time highs in the history of recorded time in many cases.