Monday, June 22, 2009

Commodities continuing to pullback

Although longer term I am a big believer in many commodities moving up in a large fashion, depending on the action today I may hedge some of this exposure nearer term.

It seems the market moves everyday opposite of the dollar and with the commodities (even gold). Let's see how the action plays out as maybe we are just having an early morning shake especially in the precious metals and will finish stronger. However, maybe the powers that be know some info that the rest of us don't (like the IMF ready to dump gold onto the market about to be announced, etc.)

Also, as you know I am short the market so maybe we are getting another case of everything going down in unison other than US bonds (that type of action would be supportive of deflation / not inflation - so maybe the deflationists will be right short term although can't see that medium to longer term).

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