Thursday, March 1, 2012

Commodities Getting Shaky

Crude oil and gold have been outperformers this year but the resistance to plow higher is growing.  Yesterday was just a stunning drop in gold which came out of nowhere after rather nonvolatile conditions for the past several weeks.  And crude oil is having a hard time keeping up with the stock market, and it has just been consolidating despite Iran.  In the end, the S&P just keeps chugging along, steady and with dips being bought aggressively.  We already have a healthy gap up off of yesterday's selloff.  I don't think anyone wants to be short ahead of the ISM.  I thought 1370 would prove to be a significant barrier but based on the price action, I'm thinking we'll probably have to get to 1400 before a significant shake out. 

2 comments:

Anonymous said...

ism below target. Top may be in for now?

Market Owl said...

No, I doubt it. ISM below target puts QE3 back on the table.

Mo money, mo money, mo money!