Guided by oil and the dollar 12/8/08
We started the week with an 8% move higher in Crude, but this is after a 25% reduction last week so don’t get too excited. The US dollar was 2% lower and is exhibiting signs of a top forming. If we see the dollar fade and oil move higher commodities are back. At this point it I am cautiously optimistic. You saw a rally virtually commodity wide; energies, agriculture, softs and metals. Very few markets failed to move higher. One day does not make a trend but we will use the ensuing rally to get positioned for clients in corn, soybeans, gold, silver, sugar, and coffee just to name a few. The stock market sold off into the close but has benefiited over the last 2 sessions largely on the expected bailout of the “Big 3″ and the Obama infrastructure plan. Sugar and silver remain our focus!
Tags: Bailout, Big 3, commodity, dollar, gold, Obama, oil, reflation, silver, stock market, sugar
