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Historically higher interest rates cause investors to abandon commodity markets as the carry cost increases and this affected precious metals particularly Thursday.

Okay, let’s see how they wrap things up for May today. Bulls have their paint brushes handy to keep everything in order to end the month on an up note.

Do a couple of days of price swings change the entire investment landscape themes? Do we sell everything related to commodities and buy banks and tech? And, has Uncle Buck finally hit bottom as well? One thing’s for sure, I don’t have the answers but the tape is talking to me and I’m listening.

It does disgust me how taxpayers through the Fed and Treasury are giving banks money with the “wink wink” purpose of making loans to lift the economy and resolve the credit crunch. But, I think they’re just trading it for their own accounts. You’ll know this when you inspect their next earnings reports and focus on “trading” profits. It should upset you. It upsets me. But that’s the market we have and acceptance is required.

Have a pleasant weekend.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in TLT, TBT and GML.

Source: Friday Outlook: Commodities, Emerging Markets