Archive - Jun 6, 2010 - Blog entry

When it comes to matters of currencies I don't trust anyone, especially politicians.

Copper and crude oil are both base essentials heavily reliant upon by economies globally for everyday usage, with no meaningful substitution options. Gold, on the other hand, is not as essential to keep the everyday world running seamlessly, and could conceivably be substituted by other commodities with a change in global monetary standard or people’s perception. From that perspective, I think there are a few recent trends pertaining to crude and copper that are being misinterpreted.

The mirage of economic recovery conjured up by our political leaders and a credulous news media dimmed and flickered in the harsh light of reality on Friday, when grim employment figures for May sent stocks into one of their steepest dives of the year. We would caution bears against becoming overly confident, however, since there are several technical factors coming into alignment that augur a potentially sharp reversal in the broad averages and some important trading vehicles that we track.

So the employment report disappointed, but was it really as bad as evidenced by such a disproportionate selloff?

Post G-20 rant on our boy Tim.

As hard as it is to believe, last week's "fat pitch" is this week's "sweet spot".