Thursday Outlook: Metals, Commodities, International

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As I stated in one chart annotation: “This week feels like a month already and it’s only Wednesday”. With two days to go it’s anyone’s guess how this week will close.

Paulson speaks tomorrow and what he’ll say is anyone’s guess. [He’ll do better than Spitzer no doubt.] He may, as so many of his predecessors have done over the past several decades when the dollar was weak; reaffirm his and the governments’ support of a strong dollar. Of course that’s laughable given Uncle Buck’s condition. Just remember one thing however, if other central banks have had enough of this decline and decide to intervene in markets, commodity prices would fall sharply upsetting many apple carts including ours.

Have a pleasant evening.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: SH, SDS, MYY, MZZ, IWM, RWM, TWM, PSQ, QID, IYR, UDN, FXE, FXF, FXY, FXA, GLD, GDX, DBS, DBB, DBA, USO, DBE, UNG, DBC, EWZ and FXI.

Comments

[fjd10595:]

I say overpriced China drops from her, in lockstep with the US market. Our economy is slowing, and so is theirs. I bought the inverse ETF at a 20% discount a couple of days ago when China rallied. We will see.

2008 Mar 13 07:46 AM

[James Seaberg:]

Forget stocks. Stay with commodities and have a nice day on the beach instead of worrying when your stock goes to zero. Whilst you enjoy the sunshine, Bernancke will print more money for you. Isn't that nice? Wealth out of nowhere!

2008 Mar 14 03:45 PM