Wednesday, September 15, 2010

Commodity Bubbles

The commodities are back in style.  I can't say that I know the fundamentals of each commodity, but I don't think we will be running out of coffee or sugar anytime soon.  They are trading as if there is a supply shortage.  The grains are going parabolic.  The fundamentals can't all be so similar.  I suspect this is the work of trend following funds going long. 

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2 comments:

  1. Anonymous9/15/2010 03:40:00 PM

    Time to go short for drop to 1105 or 1090? I do expect that we recover and go to 1140-ish thereafter (like mid to late next week). What do you think owl?

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  2. Market Owl9/15/2010 03:43:00 PM

    You are thinking the same way as I am. But I want to wait till tomorrow to see where we trade in premarket before putting on shorts.

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